Hedera (HBAR) Sheds Its Recent Gains, Risks Further 18% Correction

Hedera (HBAR) price has fallen sharply, dropping 12.5% in the last 24 hours, with trading volume around $1 billion. The ongoing correction aligns with bearish technical indicators, including a declining ADX, which reflects weakening trend strength despite the downtrend persisting.

HBAR’s price is also trading below its Ichimoku Cloud, highlighting resistance in the current market setup. However, if momentum shifts and key supports hold, HBAR could stage a recovery, potentially reversing its losses.

Hedera ADX Shows Its Downtrend Is Still Here

Hedera ADX, or Average Directional Index, has dropped to 27.9, down from 37.9 just one day ago when the current correction began. The ADX measures the strength of a trend, irrespective of its direction, on a scale from 0 to 100.

Values above 25 indicate a strong trend, while values below 20 suggest weak or absent momentum. HBAR’s ADX above 25 reflects that the downtrend remains strong, even though its decline from 37.9 signals that bearish momentum may be losing intensity.

HBAR ADX. Source: TradingView

The decline in ADX suggests that while the current downtrend persists, it may not be as forceful as it was previously. If the ADX continues to drop, HBAR’s price could enter a phase of consolidation, with reduced volatility and less aggressive selling pressure.

However, for a reversal to occur, buying activity must strengthen significantly to counteract the bearish momentum. Until then, HBAR price is likely to remain under pressure, with potential tests of lower support levels.

HBAR Ichimoku Cloud Indicates Bearish Setup 

The Ichimoku Cloud chart for HBAR reflects a bearish setup. The price is moving below the red cloud, which indicates resistance in the current trend.

The red cloud, created by the difference between the Senkou Span A (green line) and Senkou Span B (orange line), further confirms the bearish momentum, especially as the cloud’s downward slope suggests persistent pressure on the price.

HBAR Ichimoku Cloud. Source: TradingView

The broader bearish signals from the price being below the cloud and the lagging span (green Chikou Span) positioned below both the cloud and the price support the continuation of the downtrend.

For any potential reversal, Hedera price would need to re-enter the cloud, coupled with a shift in the alignment of the key lines.

HBAR Price Prediction: Next Supports Are Fundamental

The EMA lines for HBAR price suggest that the ongoing correction could intensify if its short-term EMAs continue to decline and cross below the long-term EMAs, forming a death cross.

This bearish signal typically indicates a shift to stronger downside momentum, which could lead HBAR to test lower levels. If this scenario unfolds, HBAR could approach $0.27 and $0.26, with the possibility of further declines toward $0.23, representing a potential 17.8% drop from current levels.

HBAR Price Analysis. Source: TradingView

However, the ADX suggests that the strength of the current downtrend might be weakening, providing a glimmer of hope for a reversal.

If Hedera price can maintain its position above key support levels, renewed bullish momentum could allow the price to challenge the $0.30 resistance. A successful breakout above this level could pave the way for gains to $0.32 or even $0.338, reflecting a potential 20.7% upside.