Hedera’s native token, HBAR, has faced a sharp decline after failing to breach the $0.40 resistance level. The altcoin recently retraced to $0.25, a significant drop that has left traders uncertain. 

While this correction may signal bearish sentiment in the short term, the broader macro outlook remains highly bullish. However, for HBAR to reclaim momentum, it must navigate the growing hesitation among market participants.

HBAR Traders Are Uncertain

The market’s reaction to HBAR’s recent downturn is evident in the Futures market data. Open Interest currently stands at $216 million, a sharp decline from $367 million just three days ago. This $150 million drop highlights the hesitancy among traders, many of whom are liquidating positions.

The contraction in Open Interest suggests a shift toward bearish sentiment. Traders are moving out of leveraged positions, signaling decreased confidence in a near-term recovery. As a result, unless a resurgence in interest occurs, HBAR’s price action could remain subdued.

From a technical perspective, HBAR’s macro momentum reflects a strengthening bearish trend. The Relative Strength Index (RSI) has dropped to a three-month low, last seen in November 2024. Currently sitting below the neutral 50.0 level, the indicator highlights growing downside pressure.

The falling RSI suggests sellers are gaining control, making it more challenging for bulls to push prices higher. If this downward momentum continues, it could suppress any breakout attempts, keeping HBAR range-bound for an extended period.

HBAR Price Prediction: Finding A Breach

Despite the short-term bearish pressure, HBAR is forming a macro bull flag pattern, historically a precursor to substantial rallies. If this setup plays out, the altcoin could see a 684% surge, targeting $2.83. However, for this rally to materialize, HBAR must decisively break through the $0.40 resistance.

In the near term, the probability of an immediate breakout remains low. The price is likely to continue consolidating within the $0.25 to $0.40 range. If downward pressure intensifies, HBAR could lose support at $0.25, triggering a further decline toward $0.18.

The only way to invalidate this bearish outlook is for HBAR to reclaim $0.40 as a support level. A successful breach of this resistance could fuel a rally toward $0.47, confirming a breakout from the bull flag pattern and paving the way for higher price targets.

Ethereum price started a recovery wave above the $2,500 zone. ETH is up nearly 10% and now faces a major resistance near $2,920.

• Ethereum started a decent upward move above the $2,500 support zone.
• The price is trading below $2,900 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,920 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,920 level.

Ethereum Price Attempts Recovery

Ethereum price started a major decline below the $2,800 level, underperforming Bitcoin. ETH declined below the $2,650 and $2,500 levels to enter a bearish zone.

There was a clear move below the $2,200 level. The price declined over 25% and tested the $2,120 zone. A low was formed at $2,127 and the price recently started a fresh upward move. There was an increase above the $2,500 level.

The price surpassed the 50% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low. However, the bears are now active near the $2,900 zone. There is also a key bearish trend line forming with resistance at $2,920 on the hourly chart of ETH/USD.

Ethereum price is now trading below $2,900 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,900 level. The first major resistance is near the $2,920 level and the trend line or the 61.8% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low.

The main resistance is now forming near $3,000. A clear move above the $3,000 resistance might send the price toward the $3,120 resistance. An upside break above the $3,120 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,250 resistance zone or even $3,320 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,900 resistance, it could start another decline. Initial support on the downside is near the $2,765 level. The first major support sits near the $2,650.

A clear move below the $2,650 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,420 support level in the near term. The next key support sits at $2,350.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,765

Major Resistance Level – $2,920