HBAR has recorded a profit of 4% over the past seven days and has benefited from a wider rebound across the crypto market over the past few days.
But despite the price rise, the technical indicators are flashing warning signs that the rally doesn’t have strong support and could potentially witness a reversal.
Hedera’s rally may be on unstable ground
Hbar’s Chaikin Money Flow (CMF) has been steadily decreasing despite recent rise in token prices. At the time of this writing, the momentum indicator is below the zero line of -0.16.
This forms a bearish divergence, indicating that token prices weaken the purchasing pressure behind the upward trend.
The CMF measures volume-weighted pay flows in and out of assets over a specific period and measures trading pressure. Bearish divergence occurs when the price of an asset rises and the CMF moves downwards, indicating a possible weakening of demand and reversal.
This trend suggests that HBAR’s recent gatherings are not driven by sustained demand from market participants and risk revisions in the short term.
Furthermore, measurements from Altcoin’s Bbtrend indicator support this bearish view. This indicator, observed on the day chart, is currently at -10.16 and displays a red histogram bar with an increased size for each trading session.
BBTREND measures the intensity and orientation of the trend based on the expansion and contraction of the Bollinger band. Returning the red bar will cause the asset to be consistently closed near the Bollinger band below. This reflects sustained sales pressure and suggests further downsides.
In the case of Hbar, the difference between price movement and Bbtrend confirms that upward movements lack strong momentum and may be unsustainable.
HBAR at the crossroads between $0.166 to $0.188
HBAR currently trades hands for $0.18 and supports levels for just $0.178. If bullish momentum in the broader crypto market declines and demand cannot climb, Hbar rally could lose steam. This could result in a price below the $0.178 support.
In this scenario, the token could slip into another $0.166.
Meanwhile, as new demand enters the market, HBAR rally will regain strength and can climb towards a resistance level of $0.188.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
