HBAR is running out of time as this coin has decreased by nearly 2% in the past 24 hours and is close to 10% for the week. Meanwhile, the price of HBAR has broken through several short-term support levels and is now swinging near 0.12 USD.
This level is considered very important because HBAR has only 1% space above the zone that could break down and cause the price to fall to 0.10 USD, which would be a decline of 12% to 13% from the current level. However, there is still one bullish signal that helps support the structure. If that signal disappears, the price could drop faster.
Large funds are withdrawing, dragging down weak market signals.
The main pressure comes from the behavior of large HBAR holders.
We can see from the Chaikin Money Flow (CMF), which indicates the inflow and outflow of large funds by combining price movements with trading volume. When the CMF is above zero, it means large buyers are entering the market, but when the CMF is below zero, it indicates that coins are being distributed.
For HBAR, the CMF value has dropped sharply. Since December 7, the CMF has fallen by more than 400% and has clearly entered negative territory. Previously, even when the price corrected, the CMF value remained positive, indicating that buyers were absorbing selling pressure. But this time, that support is no longer present.
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Additionally, there are clear downward signals, as between October 10 and December 14, the price of HBAR continued to create higher lows while the CMF value created lower lows, indicating that the recent price stability is not supported by major players.
In simple terms, the price must try to hold while large capital is quietly withdrawing, which creates such an imbalance that increases the risk for HBAR's price.
One bullish signal is still supporting the market.
Even though the overall picture of large capital is weak, there is still one momentum indicator that is signaling a bullish trend.
The indicator is the Relative Strength Index (RSI), which measures the strength and speed of price movements in the short term, helping to indicate periods when selling pressure may weaken. Values close to 30 often indicate oversold conditions.
On the daily chart of HBAR, the RSI has clearly formed a bullish divergence. Between November 21 and December 14, the price of HBAR made lower lows while the RSI made higher lows. This is a traditional bullish divergence, which often signals a reversal of trend.
Note: The price of HBAR is in a clear downtrend, having decreased by more than 48% over the past 3 months.
This tells us that sellers continue to push prices lower, but selling pressure is starting to diminish each time. Although the downtrend continues, the selling momentum is weakening. Currently, the bullish divergence from RSI is the only positive signal left for HBAR.
Will the price of HBAR continue to drop or reverse?
Price movement is a determinant of the final outcome. HBAR is trading below the downtrend line, which has limited every rebound in recent weeks. At the same time, the price is sitting on a Fibonacci support level near USD0.12. This line is the base of a descending triangle pattern formed from the aforementioned downtrend line.
This zone is the last significant support.
If USD0.12 is heavily breached, the next support will be around USD0.10, which would confirm a drop of 12% to 13% and extend the downtrend.
To stabilize the price of HBAR, it must rise above USD0.13. This level coincides with an important Fibonacci retracement zone, which would indicate that buyers are starting to re-enter the market.
However, a clear rebound will only occur if the price breaks above USD0.13, which would bring the price back above the downtrend line and change the market structure from bearish to neutral.
