Hedera (HBAR) Sheds Its Recent Gains, Risks Further 18% Correction

Hedera (HBAR) price has fallen sharply, dropping 12.5% in the last 24 hours, with trading volume around $1 billion. The ongoing correction aligns with bearish technical indicators, including a declining ADX, which reflects weakening trend strength despite the downtrend persisting.

HBAR’s price is also trading below its Ichimoku Cloud, highlighting resistance in the current market setup. However, if momentum shifts and key supports hold, HBAR could stage a recovery, potentially reversing its losses.

Hedera ADX Shows Its Downtrend Is Still Here

Hedera ADX, or Average Directional Index, has dropped to 27.9, down from 37.9 just one day ago when the current correction began. The ADX measures the strength of a trend, irrespective of its direction, on a scale from 0 to 100.

Values above 25 indicate a strong trend, while values below 20 suggest weak or absent momentum. HBAR’s ADX above 25 reflects that the downtrend remains strong, even though its decline from 37.9 signals that bearish momentum may be losing intensity.

HBAR ADX. Source: TradingView

The decline in ADX suggests that while the current downtrend persists, it may not be as forceful as it was previously. If the ADX continues to drop, HBAR’s price could enter a phase of consolidation, with reduced volatility and less aggressive selling pressure.

However, for a reversal to occur, buying activity must strengthen significantly to counteract the bearish momentum. Until then, HBAR price is likely to remain under pressure, with potential tests of lower support levels.