HBAR Price Dips: Technical Signals Suggest Potential Downturn

HBAR Price Correction: A Technical Analysis

Hedera's native token, HBAR, experienced a 5% increase over the past week, fueled by rising investor interest and a broader altcoin market upswing. However, a closer look at technical indicators reveals a potentially weakening bullish trend, hinting at a possible price pullback.

Weakening Bullish Pressure: EMA and Elder-Ray Index

Analyzing the HBAR/USD daily chart, we observe HBAR testing a break below its 20-day Exponential Moving Average (EMA). Currently trading around $0.155, it's holding above the EMA's dynamic support at $0.153. A sustained break below this EMA would strongly indicate weakening short-term momentum.

Further supporting a bearish outlook, the Elder-Ray Index shows shrinking green bars over the past three trading sessions. This contraction signifies diminishing bullish conviction and increases the likelihood of a near-term price reversal.

The Elder-Ray Index measures market strength between buyers and sellers. Contracting green bars, as seen with HBAR, indicate a decrease in buying pressure.

Fragile Gains and Potential Price Targets

Unless fresh buying momentum emerges, HBAR may struggle to sustain its recent gains. A potential retracement could see the price drop to $0.141. If selling pressure intensifies at this support level, a further decline to $0.124 is possible.

Conversely, a surge in buying could reverse this bearish prediction. Increased demand could push HBAR above $0.162.

Disclaimer: This analysis is for informational purposes only and not financial advice. Market conditions are volatile. Conduct thorough research before making any investment decisions.

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