Hedera (HBAR) Price Surges 180% in 30 Days, Yet Rally Might Be Running Out of Steam

by

As a seasoned analyst with over two decades of market experience under my belt, I’ve seen trends ebb and flow like the tide. Hedera’s (HBAR) recent surge is undeniably impressive, but I can’t help but notice the subtle signs that its uptrend might be losing steam.

As a researcher, I’ve noticed an impressive 182.56% increase in Hedera’s (HBAR) price over the past month. However, recent technical indicators suggest that its upward momentum may be starting to falter. The Average Directional Index (ADX) has seen a sharp decline, which typically signals a significant weakening in trend strength, even though the uptrend itself remains intact.

In simpler terms, the Ichimoku Cloud and Exponential Moving Average (EMA) lines suggest potential dangers ahead for HBAR. It’s close to crucial support points, and there could be a “death cross” situation developing. A “death cross” is when a shorter-term moving average line crosses below a longer-term one, which is often seen as a bearish signal in technical analysis.

HBAR Uptrend Is Quickly Losing Its Steam

The price of Hedera ADX has plummeted from over 60 three days ago, now at 26.2, which indicates a substantial decrease in the strength of the current trend. The Average Directional Index (ADX), ranging from 0 to 100, gauges the power behind a trend, regardless of its direction. A reading above 25 signifies a robust trend, while values below 20 hint at a weak or non-existent trend.

The substantial drop indicates that although HBAR is still trending upwards, its pace or strength has noticeably diminished.

With the Average Directional Index (ADX) slightly above 25, the ongoing upward trend for HBAR remains intact but has noticeably weakened compared to when the ADX was higher. This could indicate a period of consolidation, as bullish energy appears to be dwindling. To restore the trend’s strength, the ADX needs to increase once more, which would typically be accompanied by an uptick in buying activity.

Should the ADX keep decreasing, it might indicate an intensification of the current trend’s weakness, potentially leading to a possible reversal and heightening the risk involved.

Ichimoku Cloud Shows The Trend is Reverting

In simpler terms, on the Ichimoku chart for Hedera, we find the current price hovering around both the Kijun-Sen (represented by an orange line) and the Tenkan-Sen (a blue line). This suggests that Hedera is in a phase of stabilization following its recent surge, as these lines indicate consolidation.

The price is not above the cloud anymore, suggesting the trend could reverse soon.

Should HBAR maintain its position above the Key Support Line and subsequently rebound, this might signal a resumption of its upward trajectory, reinforcing the overall positive outlook.

If the price keeps falling beneath the cloud, it might suggest a change in direction, possibly indicating an increase in selling that could lead to more drops.

HBAR Price Prediction: A Downtrend Could Bring A Strong Correction

The Hedera EMA lines signal that the present upward trend could be about to change direction, because the shortest Exponential Moving Average line is getting close to crossing beneath the longer-term line.

In simpler terms, when we refer to a pattern called a “death cross,” it’s a warning sign for bears (those who expect prices to fall). This pattern might lead to increased selling, potentially causing the Hedera price to dip towards the support level of $0.117. If this support doesn’t hold, there’s a possibility that the price could decrease even more, reaching around $0.052.

If HBAR’s bullish trend continues and manages to bypass the ‘death cross’, it might challenge crucial resistance points at $0.158 and $0.17. Overcoming these barriers would presumably propel the price towards $0.2, which represents a potential increase of 48%.

Read More

2024-11-27 20:48