Key Support Holds Despite Heavy Selling Pressure
Hedera Hashgraph’s token HBAR suffered a 7% intraday decline as a wave of liquidations swept through the broader crypto market. The sell-off came amid heightened trading volumes, with short-term volatility shaking investor sentiment. Despite the drop, analysts emphasize that long-term bullish targets remain intact as HBAR continues to hold above a key demand zone.
On the 4-hour chart, HBAR recently broke out of a descending channel pattern, marking the end of a prolonged downtrend in early July. Since then, price action has consolidated between a strong support zone near $0.23 – $0.22 and a resistance area around $0.28.
“The market reaction was largely driven by cascading liquidations, not a shift in Hedera’s fundamentals,” BITX analyst noted. “As long as the token holds the green support block, the broader trend structure remains constructive.”
Volume spikes during the correction suggest forced selling rather than organic bearish sentiment. Historically, such patterns often precede a recovery once selling pressure cools off.
Market Outlook for HBAR
Traders are closely watching the $0.23 level, which has acted as a critical support area multiple times in recent weeks. A decisive break below could open the door to further downside, while a rebound may set the stage for another retest of the $0.28 resistance zone.
While HBAR’s 7% decline highlights near-term risks tied to liquidations, its price remains within a broader accumulation zone. Maintaining support above $0.23 will be key for bulls to keep momentum alive. If buyers defend this level, the next upside target could bring HBAR back toward the $0.28 resistance range.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.