Prepare Hedera traders, a potential 20% fall in HBAR's value is forthcoming under specific conditions...
In the rapidly evolving world of cryptocurrencies, Hedera [HBAR] found itself in a challenging position on August 29. The altcoin experienced a 4.75% price drop, bringing its value down to $0.2290.
Despite this decline, investor and trader participation in HBAR has remained robust, suggesting a resilient interest in the digital asset. However, the market sentiment around HBAR's ability to hold the current level remains uncertain.
In the current market conditions, where major assets such as Bitcoin [BTC] and Ethereum [ETH] have also been falling over the last 24 hours, market sentiment and trader and investor activity could define HBAR's next move.
A notable aspect of HBAR's market on August 29 was the imbalance, with more short positions than long positions, indicating a lack of bullish strength. Simultaneously, $2.96 million worth of short positions were observed, suggesting a dominant bearish sentiment.
However, a potential piece of encouraging news comes from the trading volume for HBAR, which surged by 45% on August 29. This surge could indicate increased buying interest or a battle between bulls and bears, potentially signalling a reversal in the trend.
Technical analysis reveals that HBAR formed a descending triangle pattern on the daily charts, a formation that threatens a potential 20% drop for the altcoin. However, this descending triangle pattern has been retested more than six times with past rebounds, offering a glimmer of hope.
Interestingly, $3.18 million worth of HBAR tokens have been withdrawn from exchanges, potentially indicating accumulation and a possible slowdown in further downside on the price charts. This could be a sign of long-term investors stepping in, hoping to capitalise on the potential dip.
The Relative Strength Index (RSI) for HBAR stands at 43.80, indicating neither overbought nor oversold conditions. This suggests that the market may not be overextended in either direction, offering a potential opportunity for a reversal.
Despite the bearish outlook, the Supertrend Indicator for HBAR remains green, suggesting a lingering uptrend. This could potentially offset the bearish sentiment and lead to a rebound.
If HBAR closes a daily candle below $0.223, a potential 20% drop towards the $0.18-zone could occur. However, HBAR held the key $0.226-level as support on August 29, offering some resistance to the downward pressure.
In conclusion, while HBAR's market is currently facing challenges, there are signs of potential resilience and hope for a reversal. The next few days will be crucial in determining HBAR's trajectory.
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