HBAR Technical Charts Worry Traders – Is Hedera Optimism Fading?

HBAR has recently experienced a price decline, as traders' optimism fades, marking a shift towards a bearish sentiment.

This downward trend, combined with dim bullish signals, suggests that this altcoin may be heading towards a prolonged price decline.

HBAR Traders Are Uncertain

In the past 10 days, HBAR's funding rate has twice shifted from positive to negative, the first time in a month. This sentiment change indicates that traders are adjusting their positions, preferring short positions over long-term buying.

The increasing dominance of short positions suggests that market participants are betting on further price drops. This change reflects traders' loss of confidence, who now expect the value of HBAR to decrease.

From a macro perspective, HBAR's technical indicators have also shifted to a downward trend. The Relative Strength Index (RSI), which slipped into the bearish zone at the end of May, reached a two-month low this week.

The RSI's decline is a strong signal indicating that HBAR is facing increasing selling pressure. As momentum weakens, the likelihood of HBAR's price continuing to drop increases.

This technical signal, along with the negative funding rate, suggests that HBAR may continue to struggle in the short term, with the potential for further decline if current conditions persist.

HBAR Price Needs to Choose a Direction

Currently, HBAR's price is $0.168, just below the resistance level of $0.172. With a mixed market sentiment, combining bearish indicators and the fading of bullish trends, the likelihood of a price drop is very high.

The resistance at $0.172 remains a significant barrier for HBAR, and if it cannot break through this level, the price may continue to weaken.

If the support level of $0.163 does not hold, HBAR could drop further, potentially reaching $0.154. This decline would extend current losses and could signal a deeper downward trend, causing many traders to reconsider their positions and continue to drive the bearish trend.

However, if HBAR can break through the resistance at $0.172, it could advance to the next resistance level at $0.182.

A successful break of this level could restore confidence among traders and investors, reversing the current bearish sentiment and nullifying the negative outlook for HBAR.