HBAR recorded a 7% decline over the past week, underperforming the broader cryptocurrency market, which is showing signs of moderate recovery.
A more detailed analysis of technical indicators paints a gloomy picture, as key indicators suggest a possible continuation of the sell-off in the short term.
HBAR bulls retreat as sellers strengthen their positions
The assessment of the one-day HBAR/USD chart shows that the Relative Strength Index (RSI) of the token remains below the neutral level of 50 and continues to decline. At the time of writing, this momentum indicator stands at 43.38. The Relative Strength Index (RSI) is a momentum indicator used to assess whether an asset is overbought or oversold. It operates on a scale from 0 to 100, with values above 70 typically signaling overbought conditions and potential price correction. Conversely, values below 30 indicate oversold conditions for the asset and the possibility of a rebound.
The RSI value for HBAR signals increasing bearish momentum. Its weakening indicates a strengthening of selling pressure, reducing the likelihood of a short-term recovery.
The Balance of Power (BoP) indicator for HBAR, which at the time of publication shows a negative value of -0.27, further reinforces the bearish outlook. This indicator measures the strength of buyers against sellers by analyzing price movements over a certain period. When BoP is negative, it indicates seller dominance in the market. This increases the likelihood of continued downward pressure on the price of HBAR in the short term.
HBAR faces downward trend pressure
The decline of HBAR in recent days has led it to trade below the descending trend line. This is a bearish pattern forming when an asset consistently makes lower highs over time, and these highs can be connected by a downward-sloping straight line.
The longer the trend line is held, the stronger the indication that the asset is in a sustained downward trend. This pattern reflects a bearish market sentiment, where HBAR sellers gradually dominate over buyers.
If this continues, it could lower the price of HBAR to $0.12. However, a rise above the descending trend line could push the price of the HBAR token to $0.19.#Write2Earn #BinanceSquare #Squar2earn #MarketPullback #Binance $HBAR
