Hedera Hashgraph (HBAR) is grappling with maintaining significant momentum, showcasing a bearish-neutral trend over the past month. Despite its potential, dwindling market enthusiasm hinders its rise.
Long-term supporters are withdrawing as market conditions negatively impact investor sentiment.
HBAR's open interest fell by $95 million in six days, indicating a notable decline in trading activity, reflecting traders pulling funds out of the asset and reducing liquidity and trade volume. The persistent consolidation period undermines confidence, reinforcing bearish sentiment.
Traders reduce exposure due to diminished short-term profit expectations, which exacerbates bearish pressure on HBAR, making it challenging to build recovery momentum. The asset is stuck in uncertainty.
Technical indicators paint a worrying picture for HBAR's macro-momentum. The Moving Average Convergence Divergence (MACD) indicates strengthening bearish momentum after a pause, showing increased selling pressure. This shift suggests a potential acceleration in the downward trend, limiting HBAR's ability to break out from its current range.
The bearish divergence is concerning; expected to decrease, it instead increased, hinting that HBAR's price may stay pressured unless significant bullish catalysts appear. Without macro trend reversals, the altcoin may face more headwinds in coming months.
HBAR's consolidation between $0.39 and $0.25 for over a month, struggling to break out, with the current price at $0.27, remains 109% below its all-time high of $0.57. Reaching $0.57 and potentially setting a new ATH requires sustained bullish momentum, similar to November's 637% rally.
While a rally of that magnitude seems unlikely in January 2025, modest momentum could still push HBAR higher. Failure to break $0.39 may extend consolidation or lead to a drop below $0.25, potentially falling to $0.18.
Breaking the $0.25 to $0.39 range is crucial for initiating an upward trend and restoring market confidence. Hitting performances similar to November and posting a new ATH would depend on favorable market conditions and renewed investor interest, both currently uncertain.
