Hedera Hashgraph (HBAR) Shows Signs of a Potential Bullish Turnaround—But the Market Isn't Quite Convinced Yet

Despite a recent rise in technical indicators that often signal price momentum, HBAR's trading volume has dropped significantly, suggesting hesitation

Hedera Hashgraph (HBAR) is showing signs of a potential bullish turnaround, but the market isn't quite convinced yet.

While recent activity has seen a rise in technical indicators that often signal price momentum, HBAR's trading volume has dropped significantly, suggesting hesitation among traders and investors. Over the past 24 hours, the token's volume fell by 27%, now resting at $104.29 million, even as its market cap holds steady around $7 billion.

This disconnect between technical signals and market participation leaves HBAR at a crossroads. Its Relative Strength Index (RSI) has climbed to 55.70, a level typically viewed as neutral to slightly bullish. This uptick hints at renewed buyer interest following a period of subdued momentum. However, other indicators paint a more cautious picture, particularly the Bollinger Band Trend (BBTrend), which remains in negative territory.

The BBTrend, which assesses trend strength and price volatility based on Bollinger Band expansion or contraction, has lingered below zero for nearly three days. Currently sitting at -3.53, the indicator suggests that HBAR is lacking directional conviction. Just a day prior, BBTrend dipped to a recent low of -5, a strong indication that price action was stagnant and devoid of clear momentum.

While a slight recovery has occurred, the continued presence in negative territory signals that traders are still reluctant to take decisive positions. Until BBTrend turns positive, Hedera could remain trapped in a sideways consolidation pattern, or worse, slip into a deeper retracement.

On a more encouraging note, the RSI has moved steadily upward, rising from 45 to 55.70 in just two days. This progression reflects a mild shift in sentiment, where buyers are slowly stepping in after a pullback. Since RSI is a widely used momentum indicator that measures the magnitude of recent price changes, its current position suggests there's still room for further upside before the asset becomes overbought.

For traders, this means the market is warming up but not overheating. Should RSI continue to climb toward the 70 mark, a short-term rally could take shape. However, as always, rising RSI levels can also signal potential exhaustion if not supported by increasing volume or sustained price action.

Perhaps the most critical technical development is the potential for a golden cross—a short-term exponential moving average (EMA) cross above a long-term EMA. HBAR's current EMA setup is approaching this crossover zone, which, if confirmed, would typically indicate a shift in market sentiment and trend direction.

Key resistance lies at $0.178, a level that has acted as a ceiling for recent price attempts. A breakout above this threshold could unlock further gains, pushing HBAR toward $0.20 and potentially even $0.258, a price zone not seen since early March. These targets align with growing optimism among technical traders who are watching for a breakout from the current range.

While bullish signals are emerging, downside risks shouldn't be ignored. The immediate support is at $0.153. If HBAR fails to hold this level, sellers could regain control, dragging the price down toward the next major support around $0.124. That would mark a return to late-February levels and suggest that the recent bullish setup was a false start.

Until the price decisively breaks above $0.178 or drops below $0.153, HBAR is likely to remain in a wait-and-see phase. With market volume currently subdued and key technicals showing mixed signals, the next few sessions could be critical in determining the token's short-term trajectory.