HBAR’s 764% Rally Faces Reversal: Key Support Levels to Watch

Hedera Hashgraph (HBAR) has been struggling to maintain upward momentum, with its price recently dipping by 23% over the past week.

This decline has sparked concerns of a potential crash, as the altcoin faces difficulties breaking above the $0.40 mark. This loss of momentum is evident in the token’s price action and also in the diminishing market sentiment surrounding the project.

Hedera Hashgraph Loses Investor Interest

The social dominance of HBAR has decreased significantly in recent weeks, which may be contributing to the token’s loss of investor interest. At the start of December, HBAR saw a peak in social media discussions, reaching a dominance of 3.84%.

This figure indicates that nearly 4 out of every 100 crypto-related discussions were centered around HBAR. However, this figure has since plummeted, with its social dominance now sitting at just 0.90%. 

As market sentiment weakens, the once-promising altcoin finds itself sidelined in favor of more dynamic cryptocurrencies. Traders and investors seem to be shifting focus toward other projects that have gained more traction, pushing HBAR further down the list of popular coins.

HBAR Social Dominance. Source: Santiment

The overall macro momentum for HBAR is also showing signs of weakness. Technical indicators, such as the Moving Average Convergence Divergence (MACD), suggest that the cryptocurrency is on the verge of a bearish crossover. This crossover could signal the end of HBAR’s recent bullish momentum that has lasted for the past month. 

A reversal in momentum, confirmed by the bearish MACD crossover, would indicate that HBAR’s price could continue its downtrend, potentially dipping below current support levels. As the market sentiment turns more negative, this correction could intensify, creating a more challenging environment for HBAR to recover and regain investor confidence.

HBAR MACD. Source: TradingView HBAR Price Prediction: Looking For A Breach

HBAR’s price dropped by 23% over the past 24 hours, after a remarkable 764% increase in the past month. This recent volatility indicates that the altcoin may be vulnerable to further downtrends if the negative momentum persists. However, HBAR is currently holding above its key support at $0.25.

If market conditions remain unfavorable, HBAR could potentially break below its support level at $0.25. This would open the door to a further decline, with the price potentially dipping to $0.18. The loss of this key support would suggest a bearish shift, potentially signaling further losses for the altcoin.

HBAR Price Analysis. Source: TradingView

On the other hand, if HBAR manages to break through the resistance at $0.39, the bearish outlook could be invalidated. A successful push above this resistance would likely propel the cryptocurrency past the $0.40 mark. Such a breakout could trigger renewed buying interest and shift market sentiment back in favor of HBAR.

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