Hedera's market performance has faced significant pressure with a pronounced decline in its price over the past week. This downturn has thrust the cryptocurrency below crucial support thresholds, making a recovery appear uncertain without renewed buying interest.
The combined effects of a widespread market retreat and subdued demand for HBAR have led to a notable double-digit decrease in the asset's value over the past seven days. Currently valued at $0.23, Hedera—ranked as the 17th largest cryptocurrency by market capitalization—has experienced a 24% decline within this timeframe.
This depreciation has led to Hedera breaching below its Ichimoku Cloud, a technical indicator which now forms a formidable resistance level above its current price. As of the latest data, HBAR remains situated below the Leading Spans A (green) and B (red) of this indicator.
The Ichimoku Cloud is utilized to assess the momentum within market trends and indicate possible support or resistance levels. When an asset moves below the cloud, it indicates a prevailing market downtrend. In this context, the cloud functions as a dynamic resistance zone, heightening the prospect of continued downward movement if demand remains stagnant.
Moreover, the substantial price reduction has forced HBAR below its 20-day exponential moving average (EMA), reinforcing the current bearish market sentiment.
A 20-day EMA gauges an asset's average price over the most recent 20 days, with a greater emphasis on recent prices to facilitate trend analysis. Should an asset trade above its 20-day EMA, it signifies positive momentum, where buyers maintain control. However, as displayed by HBAR's case, falling below this level indicates diminishing demand and a potential shift toward bearishness as sellers become more influential.
HBAR's Relative Strength Index (RSI) underscores the elevated selling pressure exerted by market participants. Currently, the momentum indicator reads 35.58.
The RSI evaluates an asset's market conditions, identifying oversold and overbought situations. It ranges from 0 to 100, with readings above 70 suggesting an asset is overbought and due for a decline. Conversely, readings below 30 indicate the asset is oversold and may be primed for a rebound.
With a current RSI of 35.58, HBAR remains in bearish territory but has not yet reached oversold status, reflecting modest buying momentum. Should selling pressure intensify, HBAR risks descending below $0.20, potentially reaching $0.16.
However, if the momentum indicator dips further below 30, it would confirm oversold conditions, potentially signaling a price recovery. Under such circumstances, an increase in demand for HBAR could lift its price to $0.28, and a successful breach above this level might propel it towards $0.40.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.