HBAR has shown a 4% increase over the past seven days, benefiting from the overall recovery in the cryptocurrency market in recent days.
However, despite the price increase, technical indicators are signaling warning signs that the rally may lack strong support and could face a reversal.
The growth of Hedera may be on shaky ground
Chaikin Money Flow (CMF) for HBAR shows a steady decline, even as the token price has increased in recent days. At the time of writing, the momentum indicator is below the zero line at -0.16.
This forms a bearish divergence with the token price, signaling a weakening buying pressure behind the upward trend. CMF measures the volume-weighted money flow into or out of an asset over a specific period, helping to assess buying or selling pressure. A bearish divergence occurs when the price of an asset rises while the CMF decreases, indicating weakened demand and potential for a reversal.
This trend suggests that the recent HBAR rally is not driven by sustained demand from market participants and is at risk of correction in the short term.
Additionally, the BBTrend indicator metrics for the altcoin support this bearish forecast. On the daily chart, the indicator is currently at -10.16, reflecting red histograms that grow with each trading session. BBTrend measures the strength and direction of the trend based on the expansion and contraction of Bollinger Bands. When it returns red bars, the asset price consistently closes near the lower Bollinger Band. This reflects persistent selling pressure and hints at the potential for further declines.
In the case of HBAR, the divergence between price movements and BBTrend confirms that the upward movement lacks strong momentum and may be unstable.
HBAR is at a crossroads between $0.166 and $0.188
HBAR is currently trading at $0.18, slightly above the support level of $0.178. If bullish momentum in the broader cryptocurrency market fades and demand does not increase, the HBAR rally may lose strength. This could potentially drop the price below the support at $0.178. In this scenario, the token could decrease to $0.166.
On the other hand, if new demand enters the market, the HBAR rally could regain strength and rise to the resistance level of $0.188.#BinanceSquare #Write2Earn #Binance #BinanceAlphaAlert #crypto $HBAR
