Hedera (HBAR) Bullish Momentum Stalls: Potential 30% Decline Ahead

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Key Takeaways

HBAR’s Bull Flag Breakdown

Historically strong in Q4 2024, Hedera (HBAR) showed early 2025 promise before losing momentum. A bull flag pattern—typically a continuation signal—formed on the 4-hour chart after a Jan. 16 peak at $0.40, followed by consolidation between $0.35–$0.37.

However, the Jan. 20 drop below $0.35 support invalidated this pattern, pushing HBAR to $0.32. The breakdown suggests weakening bullish pressure and potential extended losses.

👉 Why HBAR’s technicals point to further declines

CMF Signals Rising Selling Pressure

The Chaikin Money Flow (CMF), a key accumulation/distribution indicator, dropped below zero on HBAR’s daily chart—confirming fading buying interest and increasing sell-offs. A prolonged negative CMF could accelerate price declines.

Price Prediction: Downside Risks

  1. Fibonacci Levels: HBAR’s fall below the 0.786 Fib retracement level weakens its resistance. Next critical support lies at the 0.50 Fib level ($0.22), implying a 30% drop.
  2. Catalysts for Reversal:

    • Potential inclusion in U.S. political crypto reserves.
    • Spot ETF approval could spur demand.

Without these catalysts, HBAR’s downward trajectory may continue.

FAQ

Q: What triggered HBAR’s recent decline?
A: Breakdown of the bull flag pattern and rising CMF-based distribution pressure.

Q: Can HBAR recover soon?
A: Only with significant demand surges (e.g., ETF approvals or institutional interest).

Q: What’s the worst-case scenario for HBAR?
A: A drop to $0.22 (30% decline) if selling pressure persists.

👉 Explore Hedera’s market dynamics

Disclaimer

This analysis is informational only. Cryptocurrency investments carry risks; conduct independent research or consult a financial advisor before decisions.


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