HBAR Nears 3-Month Breakout — But Liquidity Outflows Could Spoil It

$HBAR’s recent rally has placed the altcoin within striking distance of breaking out from a critical three-month pattern. Despite the market’s bullish momentum, investor behavior may hinder its progress.

While the broader crypto market shows renewed optimism, $HBAR holders appear hesitant, creating a disconnect between sentiment and price action.

Hedera Investors Are Losing Confidence

The Relative Strength Index (RSI) for $HBAR is climbing steadily, reentering the bullish zone above the neutral 50.0 mark. This shift signals renewed buying interest and improving technical strength. As market-wide sentiment turns positive, indicators suggest that $HBAR could soon regain upward momentum if sustained demand persists.

The improving macro environment is also aiding $HBAR’s short-term outlook. With Bitcoin and other major cryptocurrencies posting fresh gains, overall market conditions have strengthened considerably.

$HBAR RSI">

$HBAR RSI. Source: TradingView

However, not all signs point to an easy rally. The Chaikin Money Flow (CMF), a key measure of capital inflow and outflow, recently dipped below the zero line, marking a monthly low. This decline reveals that investors are withdrawing liquidity from $HBAR, signaling uncertainty around its ability to sustain a breakout.

The weakening CMF highlights an imbalance between growing market optimism and cautious investor participation. While bullish sentiment dominates much of the crypto market, $HBAR’s holders remain wary of potential short-term reversals.

$HBAR CMF">

$HBAR CMF. Source: TradingView

$HBAR Price May Not Breakout

$HBAR is trading at $0.224, sitting just below the crucial $0.230 resistance level — the breakout point from its descending wedge pattern that has persisted for three months. A decisive move above this level could trigger renewed bullish momentum.

Historically, $HBAR has struggled to break free from this setup, and a failed attempt could push prices lower. If rejection occurs, the token might slip toward $0.219 or $0.213, with further downside potential to $0.205.

$HBAR Price Analysis. ">

$HBAR Price Analysis. Source: TradingView

Conversely, if broader market strength outweighs investor skepticism, $HBAR price could breach $0.230 and confirm a breakout. This move could propel the price toward $0.242, invalidating the bearish outlook and marking the start of a new bullish phase.

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