Despite the overall market growth this week, the native token Hedera HBAR has not followed the trend, recording a decline of 5% over the last seven days.
With the increasing bearish momentum, the HBAR token now risks returning to its annual minimum.
HBAR is falling below key indicators
The decline of HBAR occurs against the backdrop of many leading cryptocurrencies showing moderate gains this week, reflecting its divergence from the overall market sentiment.
The values from the daily HBAR/USD chart indicate that this bearish trend may persist in the short term. For instance, at the time of writing, HBAR is trading below the points that make up its Parabolic SAR (Stop and Reverse) indicator. This indicator measures the price trends of the asset and identifies potential entry and exit points. When the asset's price trades below the SAR, it indicates a downward trend. This suggests that the market is in a bearish phase, with the potential for further price declines.
Supporting this bearish outlook, the Chaikin Money Flow (CMF) for HBAR remains in negative territory, indicating declining buying volume and increasing seller presence in the market. Currently, it stands at -0.07. This key momentum indicator measures the money flows into and out of an asset. A negative CMF value, as seen with HBAR, signals that selling pressure dominates the market. This means that more investors are selling off the token than accumulating it, which is a sign of weakening price trends.
HBAR tests the 20-day EMA: will it hold or break down to $0.12?
The daily chart shows that the decline of HBAR has brought it closer to the 20-day exponential moving average (EMA). This key moving average measures the average price of the asset over the last 20 trading days, giving weight to the most recent changes.
When the price falls near the 20-day EMA, it signals a potential support level being tested. However, if the price decisively breaks below the EMA, it could confirm sustained bearish momentum and further downside risk.
Therefore, the breakout of HBAR below the 20-day EMA could lower its price to an annual minimum of $0.12. However, if demand rises sharply and HBAR rebounds from its 20-day EMA, its price could rise above $0.19.
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