Hedera’s native token HBAR declined by approximately 4% over the past 24 hours, following a broader downturn across major altcoins. The price drop puts increasing pressure on bulls, as the token approaches a key support level that has not been tested in several years.
Risk of retesting major support
If negative momentum continues, HBAR could retreat to $0.059, a longstanding demand area. This level has not faced significant downward pressure for an extended period, making its defense critical for the token’s short-term outlook.
At the same time, recent price action has shaped a classic falling wedge formation—a pattern typically associated with a potential bullish reversal if confirmed.
In a recent analysis, crypto chartist Gopal observed that selling pressure appears to be waning as the price compresses toward the wedge’s apex. Gopal noted that buyers are actively defending key support levels during this correction.
Selling pressure appears to be diminishing as the price moves closer to the wedge apex, with buyers continuing to defend support levels with determination.
For a reversal to materialize, HBAR must hold above $0.066, which would validate a first upside target at $0.072.
Investor sentiment and trading dynamics
Current on-chain metrics suggest that both retail traders and larger investors, known as crypto whales, remain cautious about declaring a definitive bottom. The True Strength Index (TSI), an indicator of momentum, has stayed negative for nearly a week. The metric entered bearish territory last Thursday and staged a modest recovery on Sunday, but one-hour chart trends remain on the downside.
The Chaikin Money Flow (CMF), a metric for assessing money flow and buying or selling pressure, currently stands at a highly negative -0.38, signaling continued selling by larger traders.
Trading volumes have also declined. Over the past 24 hours, spot volume for HBAR reached only $49 million, trailing behind similar market-cap tokens such as Sui (SUI), Avalanche (AVAX), Shiba Inu (SHIB), and Litecoin (LTC).
| Token | 24h Spot Volume |
|---|---|
| HBAR | $49 million |
| SUI | Higher than $49 million |
| AVAX | Higher than $49 million |
| SHIB | Higher than $49 million |
| LTC | Higher than $49 million |
In the leveraged derivatives market, the sentiment remained bearish, as $281,000 out of $284,480 of liquidated HBAR positions were longs, signaling that bullish traders faced the majority of losses amid the downturn.
Despite these pressures, HBAR bulls managed to recover a positive score in the open interest (OI) weighted funding rate after the sharp decline. Analysts see this as a potential bottoming sign for the token, although the short-to-long ratio remains unfavorable for bulls. According to data from CoinGlass, short positions currently outnumber longs at a ratio of 1:0.89.
Hedera is a distributed public network designed to support decentralized applications with a focus on scalability, security, and low transaction costs. The network incorporates a unique consensus mechanism, known as hashgraph, that enables high throughput and fast transaction finality.
Mini dictionary: Hashgraph — a consensus algorithm distinct from traditional blockchain, developed by Hedera to provide faster, more efficient, and secure transaction validation using a “gossip about gossip” protocol rather than block-based sequences.
