Hedera (HBAR) has had a difficult trading week, becoming one of the Made in USA cryptocurrencies that suffered severely last week. As of May 31, 2025, the price of HBAR fell to its lowest level in 30 days, around 0.16 USD. Although in the past 24 hours, HBAR recorded an increase of about 3%, this recovery may not mark a positive turning point in the current downtrend.
Price Trend Analysis
Current technical indicators suggest that this small recovery may just be a 'dead cat bounce' – one of the definitions in investing to refer to a temporary recovery in a prolonged downtrend. This raises some questions about HBAR's ability to maintain an upward trend.
Selling Pressure in the Market
Dear investors, in the past week, HBAR has witnessed a drop of over 10%, becoming the cryptocurrency with the worst losses among the top 10 coins in the US. This decline has caused HBAR to fall below the 20-day exponential moving average (EMA), a signal indicating that selling pressure is very strong from investors in the spot market.
The 20-day moving average is a commonly used tool to measure price trends in the short term. When HBAR slipped below this average threshold, it reflected a negative shift in price momentum from rising to falling. This could lead to increased selling pressure, causing HBAR's price to continue to decline.
Technical Signals and Market Sentiment
In addition, the Elder-Ray index, a tool for measuring the strength of buyers and sellers, also does not inspire confidence among investors. When the bars of this index remain below the zero line, it indicates that sellers are still in control. At the time of writing, this index recorded -0.028 and has continuously held negative values since May 24, 2025, indicating weakness in buying sentiment even as HBAR recorded a small increase.
HBAR Price Outlook: Support and Resistance
Currently, HBAR is trading around 0.168 USD, with the 20-day EMA acting as a resistance level around 0.184 USD. This implies that any recovery of HBAR is likely to encounter strong rejection unless there is a significant increase in buying activity.
Without sufficient buying power, HBAR may continue to plunge, with the next important support level at 0.153 USD. If buyers cannot defend this support level, there is a risk that HBAR will fall to a lower level, around 0.124 USD.
However, if buying pressure begins to strengthen, this will disrupt the bearish outlook and may help HBAR surpass the 20-day EMA, opening up the possibility of trading at a higher level of around 0.19 USD.
Conclusion
With the current situation, Hedera (HBAR) is facing many challenges. Despite signs of a small recovery in the short term, selling pressure still dominates and poses a risk of continuing to negatively impact HBAR's price. Investors should closely monitor resistance and support levels to make timely trading decisions.
Hedera needs reinforcement from buyers to extend the recovery and escape the current downtrend. The coming time will be crucial in determining whether HBAR can find strong support, and investors need to consider carefully before participating in this market.