Will Hedera (HBAR) Bounce From the $0.18 Support or Extend Its Downtrend?

Hedera (HBAR) is currently facing a crucial moment at the $0.18 support zone, which could determine the future direction of its price movement.

Hedera (HBAR) price is currently facing a crucial moment at the $0.18 support zone, which could decide the future direction of its price movement. After a period of downtrend, HBAR has found itself consolidating around this key demand zone, with traders and analysts closely monitoring whether the bulls will step in to defend it or if a breakdown is on the horizon.

Key Technical Setup and Demand Zone

At the time of writing, Hedera is trading around $0.18396, a critical support zone. This price point has seen multiple tests over the past week, where HBAR has bounced from the $0.182-$0.185 support zone, preventing further downside. The coin has been in a steady downtrend since the beginning of March, fueled by overall bearish market sentiment. However, the consistent rebounds at this support zone suggest a potential accumulation phase, where buyers are entering the market and attempting to reverse the downtrend.

On the 4-hour chart, Hedera has formed a descending triangle pattern, which is a bearish continuation formation. This technical structure indicates that if HBAR manages to break above the upper trendline of the triangle, it could trigger a rally. On the other hand, a breakdown below the lower trendline would confirm the continuation of the downtrend.

Traders are eagerly awaiting confirmation from this pattern, as a breakout or breakdown will set the tone for HBAR’s next move. According to TheCryptoExpress on X (formerly Twitter), the breakout from this pattern could lead to a sharp rally if bullish momentum picks up, but a breakdown might push HBAR into a more extended bearish phase.

Technical Indicators Point to a Potential Reversal

Several technical indicators suggest that HBAR might experience a trend reversal if the price holds at the current support. The short-term Simple Moving Averages (SMAs) are signaling a “buy” with increasing trading volume, suggesting that buyers are stepping in. The MACD indicator is also showing signs of a potential reversal, indicating that momentum could shift from bearish to bullish in the near future.

The Relative Strength Index (RSI) is currently at 40, which is in the lower neutral zone. This suggests that HBAR is not yet oversold, and there could still be room for upward movement. A sustained rise above the $0.185 mark could trigger further buying, as the market sentiment would likely shift toward a bullish outlook.

Open Interest and Increased Demand

A key factor that could support a potential uptrend is the increased Open Interest (OI) in the derivatives market. HBAR’s 24-hour Open Interest has surged by 4.5%, with the OI Funding Rate becoming positive over the past 48 hours, according to Coinglass data. This signals a shift in optimism among traders, who are placing more bullish bets on HBAR.

Additionally, the 24-hour Long/Short Ratio has climbed to 1.7 and even reached 1.9 on lower timeframes, showcasing a surge in demand for long positions. This further reinforces the notion that traders are becoming more optimistic about HBAR’s chances of a price reversal.

What’s Next for HBAR?

As HBAR hovers around the $0.18 support, the market is awaiting confirmation of either a breakout or breakdown from the descending triangle pattern and the Ichimoku cloud resistance. A breakout could signal the start of a more significant rally, with potential targets toward the next resistance levels at $0.21-$0.23.

With strong buying pressure building, HBAR’s chances of maintaining an uptrend in the mid-term look promising if the bulls manage to sustain momentum and propel the coin through the crucial resistance levels.

However, if HBAR fails to hold the $0.18 support and breaks lower, it could trigger further declines as the market may interpret this as a sign of weakness, leading to continued selling pressure. Traders should keep a close watch for confirmation of either a breakout or breakdown to determine the next phase for Hedera.