Key Takeaways
- HBAR price breaks below the bull flag support line, invalidating bullish signals.
- Chaikin Money Flow (CMF) indicates rising distribution, signaling potential further declines.
- HBAR trades below critical resistance, with a 30% short-term drop likely unless market conditions shift.
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
- 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.
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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