Can HBAR bears save prices from falling below $0.05?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- HBAR has a bearish bias in the lower timeframes
- The price action of the past two weeks hinted at the possibility of a range formation
Hedera [HBAR] has rallied well since mid-June, measuring 90.2% from the extremes it posted on 10 June and 15 August. Before the losses of the past two weeks, HBAR was primed for further gains. It also saw news developments that hinted at long-term bullishness.
Read Hedera’s [HBAR] Price Prediction 2023-24
At press time, HBAR was on its way downward to a demand zone at $0.052. Even a strong Bitcoin [BTC] rally wasn’t enough to set up short-term bullish enthusiasm. Do the buyers have enough strength to hold on to the $0.05 support?
Recent buyer weakness was a concern as HBAR approaches a demand zoneThe $0.04 area represented a bullish order block from the 1-week timeframe, while the $0.052 area was an order block from the 1-day chart. At $0.07 was a bearish order block that HBAR bulls faced rejection on 15 August.
On 17 August, the price dipped to $0.0525 before bouncing to retest the supply zone at $0.07. Therefore, it was possible that HBAR would trade within a range that extended from $0.0525 to $0.0695.
The RSI showed bearish momentum was beginning to take hold. The OBV saw a minor pullback in the past two weeks, but was on a strong uptrend. This signaled demand behind Hedera since June, and that another bounce from the $0.05 region was likely.
The market structure of Hedera was bearish on the 4-hour chart. Moreover, the $0.054-$0.056 region has been an important support since 7 August, but HBAR appeared to have flipped it to a resistance zone.
The lower timeframe sentiment tells a different taleAnalysis of the sentiment in the lower timeframes showed that the past few days were dominated by the sellers. The spot CVD was in a steady decline and noted no significant influx of capital in the spot market.
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Traders can wait for a retest of the $0.05-$0.052 block to assess whether HBAR presents an opportunity to go long. A bounce above the $0.0573 level in the coming days would be a signal that the lower timeframe market structure was bullish once more.