Hedera (HBAR) Surges—But Watch Out: Diverging Indicators Flash Warning Signs
HBAR''s price rally hits a wall of skepticism as technical signals scream overbought. Bulls charge ahead, but the charts whisper ''trap.'' Here''s why the smart money is bracing for impact.
### The Pump Before the Dump?
Hedera''s native token HBAR rides another green wave—up 15% this week alone. Yet lurking beneath the surface: RSI divergence, weakening volume, and futures open interest at dangerous levels. Classic setup for a rug pull.
### Institutional FOMO Meets Retail Bag-Holding
Enterprise adoption narratives fuel the hype cycle (again). Meanwhile, retail traders pile in at local tops—because nothing says ''financial literacy'' like chasing 20% gains after 80% rallies.
### The Verdict: Hedge or Get Rekt
Price-action junkies ignore fundamentals at their peril. When the Fed''s liquidity spigot sneezes, crypto casinos catch colds. HBAR''s tech may be enterprise-grade, but its chart looks like every other overleveraged altcoin primed for liquidation cascades.
Hedera’s Rally May Be on Shaky Ground
HBAR’s Chaikin Money FLOW (CMF) shows a steady decline even as the token’s price has rallied in recent days. As of this writing, the momentum indicator rests below the zero line at -0.16.
This forms a bearish divergence with the token’s price signaling weakening buying pressure behind the uptrend.
The CMF measures the volume-weighted money Flow into or out of an asset over a specific period, helping gauge buying or selling pressure. A bearish divergence occurs when the asset’s price rises while the CMF trends downward, indicating weakening demand and potential for a reversal.
This trend suggests that HBAR’s recent rally is not driven by sustained demand from market participants and risks a correction in the NEAR term.
Moreover, readings from the altcoin’s BBTrend indicator support this bearish outlook. Observed on the one-day chart, the indicator currently sits at -10.16, displaying red histogram bars that have been growing in size with each trading session.
The BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When it returns red bars, the asset’s price consistently closes near the lower Bollinger Band. This reflects sustained selling pressure and hinting at the potential for further downside.
In HBAR’s case, the divergence between its price movements and BBTrend confirms that the upward MOVE lacks strong momentum and may be unsustainable.
HBAR at a Crossroads Between $0.166 and $0.188
HBAR currently exchanges hands at $0.18, trading just above the support level at $0.178. If bullish momentum in the broader crypto market fades and demand fails to climb, HBAR’s rally may lose steam. This could potentially push the price below the $0.178 support.
In this scenario, the token could slip further to $0.166.
On the other hand, if fresh demand enters the market, HBAR’s rally could regain strength and climb toward the $0.188 resistance level.
