Hedera Hashgraph’s native token, HBAR, has recorded a sharp upswing of nearly 15% over the past week, signaling strong short-term momentum in the market.
However, readings from its daily chart show that a key momentum indicator has formed a bearish divergence with HBAR’s climbing price, raising concerns that the recent gains could be running out of steam.
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Hedera’s HBAR Climbs, But Weak Money Flows Threaten the Rally
An assessment of the HBAR/USD daily chart reveals an intriguing narrative. Despite the price experiencing a near 15% increase recently, the Chaikin Money Flow (CMF) has been trending downward, even dipping below the zero line.
This divergence between the rising price of HBAR and the declining CMF indicates potential underlying weaknesses in buying pressure, highlighting a critical point for traders and investors alike.
For those interested in further developments and insights on tokens like HBAR, signing up for Editor Harsh Notariya’s Daily Crypto Newsletter can be an excellent way to stay informed.
The CMF is a crucial indicator that assesses the flow of money into and out of an asset. In this case, the disconnect between HBAR’s climbing price and the weakening money flow is a worrying sign. It suggests that the buying momentum may not fully support the recent rally, meaning the current price increases could be at risk.
Additionally, HBAR is currently trading below its super trend indicator, which only adds to the bearish outlook. As of now, this super trend line signifies dynamic resistance at approximately $0.2527, indicating that selling pressure remains a dominant force in the market.
The super trend indicator serves as a barometer for the strength and direction of an asset’s price trend. When the price remains below this indicator, it typically signals that selling pressure is prevailing. This situation could significantly challenge HBAR bulls in their efforts to extend the price rally without a robust breakout.
HBAR Faces Crossroads: Support at $0.2368 or Breakout Above $0.2527?
With buyer exhaustion looming, HBAR’s upward momentum may begin to wane. A probable reversal toward the support level at $0.2368 could be on the horizon. If HBAR breaks below this floor, it may pave the way for a further decline toward $0.2156, intensifying concerns about investor confidence.
Conversely, if fresh demand emerges and can sustain the rally, HBAR might attempt to break above the significant resistance posed by its super trend indicator at $0.2527. A successful breakout here could open the pathway for further gains, potentially driving the price toward $0.2669.
