• HBAR gains 216%, and momentum weakens with ADX dropping.
  • Bullish signals include EMA crossover and Fibonacci breakout trends.

Hedera’s native token, HBAR, has captured traders’ attention with a sharp upward trajectory over the past month, gaining 216% to reach $0.171 six days ago—a seven-month high. Currently trading at $0.1525, the token is up 10.22% in the last 24 hours but remains 73% below its all-time high. Despite the bullish sentiment, technical indicators suggest a potential weakening of momentum.

The Average Directional Index (ADX), a key measure of trend strength, has dropped sharply from over 60 three days ago to 26.2. While this indicates the uptrend is still intact, it suggests a significant decline in momentum. 

Meanwhile, on a weekly chart, HBAR has seen three consecutive bullish candles, driving a recovery from $0.041 to its current price. The token has also surpassed the 50% Fibonacci retracement level, breaking a long-standing resistance trendline.

Is Hedera Heading for a Major Correction or Rally? image 0 HBAR Price Chart, Source: Sanbase

What HBAR Traders Should Be Aware Of?

Bullish signals include a potential positive crossover of the 50- and 100-week Exponential Moving Averages (EMAs) and strong momentum reflected in the Moving Average Convergence Divergence ( MACD ) indicator. In the four-hour chart, HBAR has established a rising channel pattern supported by the 50-, 100-, and 200-EMAs, suggesting continued bullish sentiment.

However, the Cloud chart paints a more cautious picture. HBAR is hovering near the Kijun-Sen line, indicating consolidation. A failure to stay above the cloud could signal a reversal. The 4-hour chart also highlights a possible “death cross” formation, a bearish signal where the short-term EMA crosses below the long-term EMA. If this occurs, HBAR could test support levels at $0.117 and potentially dip further to $0.052.

On the upside, HBAR’s next resistance levels are at $0.158 and $0.17. A breakout above $0.20 could mark a significant bullish continuation. However, with ADX declining, traders should watch for consolidation or reversals before making decisions.

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