Hedera (HBAR) has been navigating a turbulent market, experiencing significant drops over the past month. Despite these challenges, recent price action indicates a potential shift in momentum, hinting at an attempted recovery. However, the path forward is riddled with immediate hurdles that could dictate its short-term trajectory.
Signs of a Bullish Turnaround
Following a persistent downtrend that began in mid-August, HBAR showed a notable bullish structure shift in late October by breaking past the $0.195 mark. This move was a crucial development on the daily chart, signaling renewed strength from buyers after a substantial 24.56% decline over the previous month, much of which stemmed from the October 10th crash. Further supporting this hopeful outlook, the On-Balance Volume (OBV) has consistently formed higher lows and higher highs over the past three weeks, suggesting an accumulation phase and an underlying attempt by the altcoin to establish a recovery.
Navigating Immediate Resistance and Weakened Momentum
While the daily chart presented optimistic signs, HBAR faces considerable resistance and dwindling buying pressure in the immediate term. Recent data reveals a nearly 50% drop in daily trading volume, a red flag that the nascent price bounce might be faltering. Short-term analysis points to weak buying interest, with the hourly OBV indicating a lack of conviction from purchasers. This weakness, combined with strong supply pressure identified between $0.19 and $0.20, makes the current test of the critical $0.176 local resistance level precarious. Traders are cautioned to prepare for a potential rejection at this point, which could lead to another Hedera price drop as a new correction has reportedly begun on November 1st.
