Since January 17, Hedera (HBAR) has been on a downward trajectory, losing 20% of its value as selling pressure intensifies. The altcoin has been trading below a descending trendline, indicating persistent bearish sentiment in the market.
As demand for the altcoin continues to plummet, HBAR is at risk of extending its price decline. This analysis provides the details.
Hedera bears dominate the market
BeInCrypto’s assessment of HBAR’s price performance on a daily chart reveals that the altcoin has been trading below a descending trendline since Jan. 17. The token is trading at $0.31 at press time, seeing a 20% price drop since then.
A descending trendline is a bearish pattern that connects a series of lower highs in an asset's price movement, indicating a consistent downward trend. When an asset is trading below this trendline, it suggests that the price is under downward pressure and the prevailing market sentiment is bearish.
HBAR Descending Trendline. Source: TradingView
HBAR’s Awesome Oscillator (AO) readings confirm this prevailing bearish sentiment. For context, this momentum indicator has only been showing red histogram bars since January 21, indicating that HBAR has been accompanied by negative bias for some time.
An asset’s AO measures market momentum by comparing the difference between two simple moving averages (SMAs) of an asset’s price. When its bars are red, it indicates a shift toward bearish momentum, suggesting that sellers are gaining strength and the market may be primed for further declines.
Awesome Oscillator da HBAR. Fonte: TradingView
HBAR Price Prediction: Under Threat of 18% Drop to $0.26
If sellers maintain control of the market, HBAR is at risk of falling by 18% to trade at $0.26. According to its Fibonacci Retracement tool, if selling increases at this point, this support level may not hold, and the token’s price could fall further to $0.22.
HBAR Price Analysis. Source: TradingView
However, a positive shift in market sentiment could prevent this from happening. If HBAR witnesses an increase in buying pressure, its price could rebound and rally towards its multi-year high of $0.40.
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