Although Hedera (HBAR) has recently excited investors with an impressive 38% price increase, experts point out that a correction may follow this rise.
This rapid increase is occurring alongside bearish signals such as a drop in trading volume and a high Fear & Greed Index.
“Current market sentiment suggests that a sell-off is imminent,” a source at COINOTAG said, highlighting the growing concern among investors.
Over the past week, Hedera (HBAR) investors have seen a significant increase of 38%, and CoinMarketCap data confirms this trend. Specifically, an increase of approximately 24% was observed in 24 hours, with the price of HBAR reaching $0.205, bringing its market value to over $7.8 billion.
This dramatic rise has not only affected HBAR’s valuation but also its social metrics, leading to increased interest among investors and attracting new investors to the market.
Moreover, Crypto Tony, a well-known crypto analyst, stated that this price action could provide a promising entry point for investors. However, there remains uncertainty as to whether this increase is sustainable.
The recent rapid rise in HBAR is a reminder that historically, large price increases have been followed by corrections. Observing market behavior shows that a rapid increase in prices due to excitement about a new trend is often followed by a decline, which can lead to price corrections.
Another factor supporting this prediction is the significant decline in trading volume reported by Santiment. Such declines in trading volume are usually a precursor to bear market changes. Current market conditions also reflect this scenario and advise potential buyers to be cautious.
The Fear and Greed Index is another risk factor in the market. The index shows “extreme greed” at 86%, which has historically tended to indicate falling prices. High levels of greed could create selling pressure among investors and have a negative impact on the price of HBAR in the short term.
Technical indicators also confirm this possibility. The long/short ratio shows that the number of short positions is increasing compared to long positions, indicating a growing bearish sentiment. In addition, the price of HBAR has recently approached the upper limit of the Bollinger Bands, indicating a possible price correction. The Relative Strength Index (RSI) is trading close to the overbought region, warning that selling pressure may increase.
If there is a price correction, the price of HBAR could likely pullback towards the key support levels between $0.142 and $0.128, which could present a potential buying opportunity for cautious investors.
