Hedera (HBAR) Price Prediction: Will the Altcoin Rebound From Its Recent Downtrend?

Hedera (HBAR) has been experiencing a steady decline in price over the past few weeks, showing little sign of a reversal

The price of HBAR has been experiencing a steady decline over the past few weeks, showing little sign of a reversal despite positive long-term sentiment and growing confidence among traders in a comeback for the altcoin.

As it stands now, HBAR is holding above the key support level of $0.177, which has acted as a strong floor for the altcoin over the last three months. However, the price continues to face downward pressure, leaving traders with a sense of uncertainty.

Despite the current trend, there are still signs of optimism in the market, with many traders betting on a strong comeback for HBAR in the near future.

This optimism is reflected in the positive funding rate for HBAR, which suggests that long positions are dominating short contracts in the market. When the funding rate is positive, it typically means that traders are more confident in the price increasing than in it continuing to fall.

This is a significant observation, as it indicates that there is a substantial number of traders who are willing to bet on HBAR’s recovery. This sentiment is evident in the fact that investors are holding onto their positions with the expectation that Hedera will eventually see a rebound, even though the market is currently experiencing a decline.

However, traders are still facing difficulties in generating any immediate profit due to the recent market price action and broader market conditions, which have posed challenges for these long positions to materialize.

Strong Downtrend Reflected In ADX Indicator

Looking at the broader trend for HBAR, the Average Directional Index (ADX) indicator signals that the altcoin is still in a strong downtrend.

The ADX, which measures the strength of a trend, is currently well above the 25.0 threshold, indicating that the bearish momentum is likely to persist in the short term. A high ADX reading suggests that there is little sign of immediate reversal and that HBAR could face further downward pressure before finding a solid support level.

As a result, traders need to be cautious when considering new positions, as the risk of further declines remains high while the downtrend continues.

Only when the ADX indicator shows signs of weakening or a shift in market sentiment occurs is this downward pressure expected to subside. However, once the market conditions improve, traders believe that HBAR could see a strong rebound.

Currently, HBAR is trading at around $0.184, down by approximately 6% over the past 48 hours. The altcoin had struggled to hold above the $0.197 support level, which may signal further declines in the short term.

If the price continues to slide, the next significant support for HBAR lies at $0.177, a level that has consistently held up as a strong floor for the asset over the last three months. This level is crucial for HBAR’s ability to recover, and a failure to maintain this support could result in testing lower levels, such as $0.150 or lower, placing additional downward pressure on the coin.

However, should HBAR find stability at the $0.177 support, it could indicate a temporary consolidation in this range. This consolidation could be a prelude to a potential move higher, setting the stage for a reversal.

Moreover, if HBAR manages to break the $0.197 resistance and flip it into support, it would invalidate the bearish trend and signify a shift toward positive price momentum.

Finally, a successful breach of the $0.222 resistance could further fuel this optimism, helping to bring HBAR back into an upward trend and setting the stage for a potential rally toward the $0.250 or $0.300 levels, ultimately setting the coin up for a strong comeback.