Hedera (HBAR) Price Plunges 6%: Bearish Channel Signals Potential Drop to $0.142

Hedera HBAR Price Plunges 6%: Bearish Signals Mount as Shorts Dominate – What’s Next?

Hedera’s native token HBAR has extended its losing streak, dropping another 6% in the past 24 hours to trade near $0.1925. This marks the second straight day of declines, driven by sharply falling trading volume and a surge in bearish positions across derivatives markets. With broader crypto sentiment still cautious, HBAR’s technical indicators paint a grim picture—unless key reversal signals appear soon.

Trading Volume Crumbles as Bears Take Control

Buyer interest has evaporated. HBAR’s 24-hour trading volume plunged 38% to $512 million, creating a low-liquidity environment where sellers dominate. This lack of participation has amplified downward pressure and allowed short-sellers to build aggressive positions.

Derivatives data from CoinGlass tells a clear story: $7.24 million in short positions now dwarf $2.90 million in longs. Critical liquidation zones are tightly clustered, with $0.1888 acting as major support and $0.1972 as overhead resistance. A break below $0.1888 would wipe out over-leveraged longs, likely triggering a cascade of forced selling. Bears are betting heavily that HBAR cannot reclaim $0.1972 anytime soon.

Technical Setup Screams Downtrend

Daily Chart Analysis

HBAR remains locked inside a descending channel that began forming earlier in 2025. Price has repeatedly rejected the upper trendline while grinding lower, confirming seller control. The token also trades well below its 200-day Exponential Moving Average (EMA)—a reliable long-term bearish signal.

Today’s price action is shaping a bearish engulfing candlestick, adding confirmation to the downtrend. Supporting indicators align perfectly with the bear case:

• Average Directional Index (ADX): 34.24 – well above 25, indicating strong trending momentum
• Supertrend Indicator: Persistent red signal, no signs of reversal
• Relative Strength Index (RSI): Near 40, approaching oversold territory but not yet flashing buy signals

Should HBAR close a daily candle below $0.188, technical targets point to $0.142—a potential drop of over 24% from current levels. This aligns with prior swing lows and the lower boundary of the channel.

Key Reversal Triggers to Watch

Despite the heavy bearish bias, two developments could shift momentum:

1. Channel Breakout: A confirmed daily close above the descending channel’s upper trendline—currently near $0.205—would invalidate the bearish structure and open the door to $0.24–$0.26.
2. Spot ETF Inflows: Canary Capital’s newly launched HBAR ETF (ticker: HBR) saw an impressive $45 million in day-one inflows. Sustained institutional demand through this regulated vehicle could absorb selling pressure and rebuild confidence among retail and professional traders alike.

Network Strength vs. Market Weakness

Hedera’s fundamentals remain robust. The network consistently processes 8–10 million daily transactions, with growing adoption in DeFi, NFTs, tokenization, and enterprise supply chain solutions. Over 68% of HBAR supply is staked, reflecting strong holder commitment and network security.

Yet macro headwinds continue to cap upside. Rising U.S. Treasury yields, regulatory scrutiny of proof-of-stake assets, and Bitcoin’s struggle to hold $70,000 have kept risk assets under pressure. The Crypto Fear & Greed Index sits at 38 (Fear), underscoring widespread caution.

On-Chain Metrics: Caution Flags Rising

• Active addresses down 12% week-over-week
• Exchange supply increasing—suggesting profit-taking or hedging activity
• Staking participation stable but not growing amid price weakness

Critical Price Levels Ahead

• $0.1972 – Immediate resistance and short liquidation zone
• $0.1888 – Key support; breach triggers long liquidations
• $0.205 – Descending channel top; breakout level for bulls
• $0.142 – Downside target on confirmed breakdown

Bottom Line: Bears in Full Control—For Now

HBAR’s bearish outlook stays firmly in place as long as price remains inside the descending channel and below the 200-day EMA. Near-term risks skew heavily to the downside, with $0.142 a realistic target if $0.1888 fails. That said, the combination of strong ETF inflows and a technical breakout above $0.205 could spark a rapid sentiment shift.

Traders should stay vigilant. Watch volume trends, liquidation heatmaps, and ETF flow reports closely. Any spike in long liquidations below $0.1888 could mark the starting gun for accelerated selling. Until proven otherwise, discipline and tight risk management remain essential in this volatile setup.

Todor Tsonev publication: "Hedera (HBAR) Price Plunges 6%: Bearish Channel Signals Potential Drop to $0.142" was written for 24crypto.news

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