Hedera Hashgraph’s HBAR Token Faces Selling Pressure

Hedera Hashgraph’s native token, HBAR, has experienced significant selling pressure, recording a 12% decline over the past 30 days and a further 10% drop in the last week.

Retail and Institutional Sentiment Weakens for Hedera

Data from Santiment indicates that HBAR’s social dominance, a metric of its discussion frequency compared to other cryptocurrencies, has decreased by 55% in the past month, currently at just 0.74%.

HBAR’s price trends to the downside on the daily chart. Source: HBARUSD chart on Tradingview

This drop signifies diminishing interest from retail traders, an essential momentum driver during past bullish phases. Historically, increased social dominance has led to price rallies, while a decline typically results in lower trading volumes and sluggish recoveries.

Similarly, Hedera’s Smart Money Index (SMI), tracking institutional trading activity, has fallen to 1.108. This suggests that institutional investors are reducing exposure, indicating a cautious short-term outlook for Hedera.

Technical Levels Define Bull and Bear Scenarios

From a technical standpoint, HBAR is in a precarious zone. Analysts identify $0.1885 as a crucial support level. A decisive drop below this level may signal further downside, pushing the token deeper into bearish territory.

Conversely, buyers could find a recovery path if demand resurges. A rebound above $0.2212 would signal strength, potentially pushing towards $0.2636. These price levels now define the battleground between bullish and bearish traders, who are closely monitoring price movements for confirmation.

Meanwhile, trading volumes remain low, indicating weak participation from both retail and institutional investors. While low volumes can sometimes precede a consolidation-based breakout, they also heighten the risk of extended weakness if demand does not pick up.

What Could Trigger an HBAR Recovery?

Despite the current bearish trend, there are potential catalysts for recovery. Broader cryptocurrency market rallies, increased ecosystem adoption, or positive developments in Hedera’s enterprise partnerships could revitalize sentiment.

Recent reports of whale accumulation suggest large investors still see long-term potential in Hedera’s network.

For now, a cautious optimism permeates the market outlook. Traders should closely monitor the $0.1885 support and $0.2212 resistance levels. A sustained break above the latter could indicate the start of a relief rally, while falling below support may extend the current decline.

Cover image from ChatGPT, HBARUSD chart from Tradingview