Hedera (HBAR) is trading under long-term pressure with price activity still struggling to break out of a key resistance area.
Analysts warn that the larger structure continues to favour downside continuation in spite of times of consolidation unless bulls take back key levels.
As the token approaches the $0.12 level, market participants are keenly following whether demand will be able to support the price, which will fall in support levels as shown in the higher-timeframe charts.
HBAR Trades Below an Important S/R Level
In a more recent X post, analyst Popeye (@SailorManCrypto) presented a more cautious view of the daily chart of HBAR, stating that the price is vulnerable because it will be trading below a significant support/resistance flip area.
The analyst said that the lack of recapture of this level continues to make the greater structure bearish, making it more likely that it will move down to the demand zone that initiated the last significant impulsive rally of the memecoin.
Source: X
Popeye also pointed out the Fair Value Gap (FVG) of a big size below the current price, as it is usually revisited by the market.
According to the analyst, the price is set to move down until the crypto can decisively reclaim the key resistance in order to fill in this imbalance, which is consistent with the overall corrective structure that can be seen on the daily timeframe.
Weak Momentum in the Market Data
This is because Hedera is currently priced at $0.12, which is a 3.11 percent drop in the last 24 hours according to BraveNewCoin.
The market capitalization of the network is $5.06 billion, and it is backed by a 24-hour trading volume of $161.66 million. The token is rated the 33rd cryptocurrency, and its supply of tokens is 42.79 billion.
Source: BraveNewCoin
Although its position in the market is comparatively high, HBAR is almost 79 percent of its record value of $0.57 in September 2021.
The restrained price performance between 0.12 (low) and 0.12 (high) in the last day indicates the absence of bullishness, and it can be said that traders are not engaged in the directional movement as they await the correct action to be taken.
Technical Structure Implicates Demand test in case resistance is intact
On TradingView, the HBAR/USDT daily chart is still showing a larger down trend with reduced highs and condensed recoveries. Momentum indicators are muted, and this correlates with the analyst opinion that the price may go back to the areas of lower demand unless the buyers come in with force.
The asset below the indicated resistance level is technically correct to experience downside scenarios to places the demand has never been tested.
Source: TradingView
It would take a long reclamation of the resistance to negate the bearish prophecy and turn the tide to the bulls.
Until this point, traders will probably proceed with HBAR with extreme care, keeping an eye on volume and price response at critical support levels to determine whether the crisis has been resolved or if it is persisting.