Hedera (HBAR) is currently navigating a period of anticipated volatility, with analysts predicting a short-term price dip before a potential bullish reversal. Despite recent struggles to break key resistance levels, the longer-term market structure for HBAR appears to retain its bullish momentum, contingent on certain critical market conditions.
Navigating HBAR's Short-Term Volatility
HBAR is signaling a potential short-term price correction, with experts forecasting a dip towards a liquidity pocket in the $0.218-$0.223 range. This expected decline follows HBAR's inability to sustain a rally beyond the significant supply zone of $0.285-$0.3, having briefly touched $0.305 before retreating. Technical indicators further support this outlook: the Accumulation/Distribution (A/D) indicator has failed to establish a clear uptrend, suggesting weak demand, while the Chaikin Money Flow (CMF) dipping below -0.05 points to considerable capital outflows from the market. This confluence of factors makes the identified liquidity zone a strong magnetic area, likely to pull HBAR prices lower in the immediate future.
Long-Term Outlook and Key Influences
Despite the predicted short-term dip, the overall market structure for HBAR remains bullish on a longer timeframe, primarily because the price has not yet broken below its higher low at $0.223. This resilience suggests that any impending dip might be brief, presenting an opportunity for investors to consider buying. However, the sustained bullish trajectory is heavily reliant on Bitcoin's (BTC) performance. For HBAR to execute a bullish reversal after hitting the demand zone, Bitcoin must successfully defend its critical $112,000 support level. A significant cause for concern, potentially shifting the HBAR outlook to more conservative, would be a drop below $0.206, particularly if Bitcoin fails to hold $112,000 and falls below $110,000.
