TLDR
- Hedera’s 21.7% drop tested its 100-week moving average for the first time since 2024.
- Heavy liquidations led to a price decline, reaching a $796 million trading volume.
- Analyst confidence grows if HBAR stabilizes above $0.145, maintaining a bullish trend.
- Signs of seller exhaustion suggest Hedera may be near a market bottom for a rebound.
Hedera (HBAR) recently saw a sharp drop in price, testing its 100-week moving average for the first time since November 2024. The cryptocurrency experienced a steep 21.7% decline, dropping from $0.215 to $0.1685. This decline, driven by market-wide volatility and significant liquidations, has left many investors and analysts closely watching its next move. The key question is whether the asset can stabilize and maintain its long-term bullish structure or face deeper corrections.
Hedera’s Price Drop and Market Volatility
The sudden drop in Hedera’s price was largely driven by broad market volatility. The cryptocurrency experienced heavy liquidations, with trading volumes reaching approximately $796 million.
This sharp intraday decline tested the long-term support level at $0.145, where Hedera’s 100-week moving average currently sits. The price fell from $0.215 to a low of $0.1685, marking a significant shift in momentum.
Heavy liquidation activity, combined with general market downturns, led to uncertainty. This has prompted traders and investors to monitor whether the 100-week moving average will hold as a strong support level. Many analysts believe this could be a critical point for Hedera, indicating whether it can resume its previous upward momentum or face a deeper retracement.
The Retest of the 100-Week Moving Average
Hedera’s retest of the 100-week moving average is drawing attention due to its significance as a long-term support level. This is the first time since November 2024 that the price has dropped to this key level, making it a critical test for the asset’s future trajectory.
The 100-week moving average has historically acted as a strong support during previous market downturns. Analysts view the retest as a potential “technical reset,” drawing comparisons to earlier patterns that preceded notable price breakouts.
If Hedera can stabilize above the $0.145 level, it may maintain its long-term bullish trend. However, if the price fails to hold, there are concerns that a deeper correction could follow, with some suggesting the price could fall toward the $0.10–$0.12 range. The next few days and weeks could be crucial in determining the cryptocurrency’s direction.
Seller Exhaustion and Liquidity Pocket
Despite the recent selloff, community sentiment around Hedera remains relatively positive. Analysts point to signs of seller exhaustion near the $0.17 level, suggesting that the pressure from sellers is easing.
This could indicate that the market is testing a liquidity pocket, where stronger hands might reaccumulate positions. The level of buying activity around $0.17 has been seen as a sign that Hedera could be nearing a bottom, with some traders anticipating that the market volatility will eventually subside.
In addition to seller exhaustion, analysts like Gilmore Estates remain confident in Hedera’s long-term potential. They believe that if the asset stabilizes above the current support level, it could return to its previous bullish structure. These signs of stabilization could signal the start of a gradual rebound for the cryptocurrency as the market returns to a more balanced state.
Market Outlook and Potential Scenarios
While the current market volatility poses risks, the potential for recovery remains present, especially if Hedera manages to maintain support above the critical 100-week moving average. The next few weeks will be crucial in determining the strength of the rebound.
Analysts will continue to watch for further signs of accumulation or distribution, as they assess the strength of Hedera’s market recovery.If the price fails to hold above the moving average, further downside risk could follow.
On the other hand, if support at the $0.145 level holds and the market stabilizes, Hedera could continue its long-term upward trend. In any case, the current price action serves as a critical point for both short-term and long-term traders to evaluate Hedera’s prospects in the face of broader market fluctuations.
