Hedera (HBAR) is showing signs of changing market forces after ten days of bullish activity, during which the price has fallen by more than 6% in the last seven days.
Technical indicators are urging traders to adopt a more cautious approach.
The Bollinger Band Trend (BBTrend) took a critical turn into negative territory with a reading of -3.35. A reversal occurred two days ago after HBAR's price had been above zero for an extended period, indicating a weakening of bullish market pressures.
The BBTrend acts as a momentum indicator by measuring price movement and direction relative to Bollinger Bands and shows strong bullish momentum when above zero as prices move towards the upper band. The negative reading shows increasing bearish sentiment combined with rising volatility, which could trigger further declines if supported by other market indicators.
The Relative Strength Index (RSI) adds another layer of uncertainty to the current market situation. The RSI rose from yesterday's low of 42.45 to reach 49.82 after briefly touching 54, but continues to remain below the decisive level of 50. The current market position shows signs of indecision as buyers and sellers continue to vie for dominance.
The recent price rise indicates a possible market stabilisation or bullish momentum, but the failure to breach the 50 level shows that there is still no clear dominance from either buyers or sellers. The RSI functions as a momentum oscillator from 0 to 100, where the 50 level represents a crucial point between bullish momentum above it and bearish pressure below.
HBAR remains confined in a narrow range between the resistance at $0.189 and the support level at $0.1849. The market is currently in a narrow range, which indicates that traders are waiting for a move to determine the next trend. A break above the $0.189 resistance level will open the way for upside targets at $0.199 and $0.202. If the bullish momentum maintains its strength, HBAR could rally back to the $0.258 level, making for a big market breakout.
If the price falls below the support level at $0.1849, the most likely path will lead towards lower price points, with target zones at $0.175 and $0.16. A further drop could push HBAR down to $0.124, wiping out a considerable portion of recent market gains. Market participants will pay close attention to these support and resistance levels, as they represent important trading points that could generate increased trading activity and momentum shifts.
Currently, Hedera is consolidating as pressure from both buying and selling forces increases. The downward movement of the BBTrend combined with the RSI's position below the 50 level indicates that traders should exercise caution while remaining vigilant for a potential breakout that will establish HBAR's next trading phase.
