After failing to overcome the $0.40 resistance level, Hedera’s native token, HBAR, witnessed a significant retracement to $0.25. This decline has introduced uncertainty among traders.
Despite this short-term bearish sentiment, HBAR's broader macro outlook remains optimistic. However, regaining momentum necessitates overcoming the current market hesitancy.
The recent downturn for HBAR is clearly reflected in the Futures market. Open Interest has fallen to $216 million, down from $367 million just days earlier. This $150 million reduction underscores trader caution, with many closing their positions.
This contraction in Open Interest indicates a bearish shift. Traders withdrawing from leveraged positions signal a lack of confidence in a swift recovery. Without renewed interest, HBAR's market performance may continue to languish.
From a technical angle, HBAR exhibits a strengthening bearish trend. The Relative Strength Index (RSI) has declined to a three-month low, last seen in November 2024. Currently below the neutral 50.0 level, the RSI indicates increasing downward pressure. This downward trajectory restricts bulls' efforts to elevate prices, complicating breakout attempts and potentially keeping HBAR range-bound for some time.
Even amidst short-term bearish pressure, HBAR shows a macro bull flag pattern that historically predicts significant rallies. Should this pattern emerge successfully, a surge of up to 684% could elevate HBAR's value to $2.83. Nonetheless, breaking past the $0.40 resistance is crucial for this rally to occur.
In the immediate future, however, the likelihood of an immediate breakout seems low. Price consolidation between $0.25 and $0.40 is probable. Escalating downward pressure could see HBAR dropping below $0.25, setting the stage for a decline toward $0.18.
Only by converting the $0.40 mark into a support level can HBAR invalidate this bearish outlook. A successful breakthrough could initiate a rally toward $0.47, confirming a breakout from the bull flag and opening the path to higher price targets.
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.