Hedera’s HBAR Climbs 15% This Week
Hedera Hashgraph’s native cryptocurrency, HBAR, has experienced a notable surge of nearly 15% over the past week. While this rally signals short-term momentum, technical indicators suggest that the upward trend could be losing steam. Let’s dive into the data to assess whether HBAR can sustain its gains or if a market pullback is imminent.
Bearish Divergence Raises Concerns
Analyzing HBAR’s daily chart reveals a bearish divergence forming despite the price rally. A key metric, the Chaikin Money Flow (CMF), is trending downward and has slipped below the zero line. This indicates shrinking inflows of capital into the asset, casting doubt on the sustainability of the current rally.
The CMF indicator helps measure the money flow into and out of an asset. When prices rise without concurrent increases in money flow, it often signals a potential reversal. For HBAR, the falling CMF suggests weakening demand and raises the probability of a short-term correction.
Trading Below Key Resistance Levels
Adding weight to the bearish outlook is HBAR’s position relative to its super trend indicator. Currently trading below the super trend line at $0.2527, sell-side pressure remains dominant. This dynamic resistance makes it challenging for bulls to extend the rally further.
If buyer momentum weakens, HBAR could retreat to its immediate support level at $0.2368. A breakdown below this could lead to a deeper decline toward $0.2156. Conversely, a decisive breakout above $0.2527 could pave the way for gains targeting $0.2669.
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Key Takeaways for HBAR Investors
While HBAR’s recent performance is encouraging, caution is warranted given the bearish signals forming on its chart. Here’s a quick summary of what to watch:
- Key support at $0.2368: a breakdown could lead to further declines.
- Resistance at $0.2527: breaking above this level is crucial for further gains.
- Monitor the CMF indicator: declining money flow suggests weakening demand.
As always, it’s essential to conduct your own research and consult financial professionals before making investment decisions. For regular updates and expert insights, consider subscribing to a trusted cryptocurrency newsletter.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry risks, and value fluctuations are common. Please trade responsibly.
