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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.
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 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.
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.
newsbtc.com
cointelegraph.com