HBAR Is Close to Losing Its Only Bullish Setup Despite The Price Rise — Here’s Why

HBAR worth recovered nearly 26% from its November 21 low close to $0.12. The worth is up about 4% within the final 24 hours, which seems like a good short-term restoration.

But the bounce doesn’t look convincing. The solely bullish setup on the chart is weakening quick, and the indications present fading power moderately than rising help.

Cup-and-Handle Setup Is Weakening While Bull Power Drops

HBAR’s only short-term bullish case sits on the 4-hour chart. Between November 20 and November 23, the value created a cup-and-handle sample. A cup-and-handle is a typical bullish setup the place worth curves down after which up (the cup) earlier than forming a small pullback (the deal with). A breakout occurs solely when the value first closes above the deal with’s high.

For HBAR, that breakout stage is round $0.147.

A clear shut above $0.158 breaks the cup itself and prompts the sample’s projected goal close to $0.194. Invalidation for this sample lies beneath $0.143.

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But the difficulty is easy.

The Bull Bear Power (BBP) indicator, which compares market power towards common worth, has been weakening since November 23. BBP remains to be constructive, however it’s sloping down, which suggests patrons are dropping management proper when the sample wants momentum to escape.

This is regular throughout consolidation, however HBAR is losing strength too quickly. If the value falls beneath $0.143, the deal with breaks to the draw back. When that occurs, the cup-and-handle setup collapses, and the one bullish set off disappears.

Big Money Flow Isn’t Enough

That weak spot can be seen on the every day chart. HBAR is still trading inside a falling channel. A falling channel kinds when each highs and lows drop in a straight, parallel path. Price touched the decrease band of this channel on November 21 and bounced practically 27%, however the transfer light shortly.

The Chaikin Money Flow (CMF) explains why. CMF measures whether or not huge cash is flowing in or out of a token. It has been beneath its trendline since early November and has not crossed above zero. Big cash shouldn’t be supporting the bounce. An analogous CMF failure on November 8–10 additionally led to a HBAR worth drop.

Until CMF breaks its trendline and strikes above zero, each bounce is only a response, not a pattern change. And that’s the reason even the handle-breakout on the 4-hour is susceptible to failing.

HBAR Price Levels: The Bounce Is Still Weak Unless Key Breakouts Happen

The every day HBAR worth motion confirms the identical weak spot.

To proceed increased, HBAR should break:

• $0.169 — resistance from the 0.618 retracement and the higher trendline of the falling channel.
• $0.182 — the stronger every day resistance

However, these ranges come into the image if the important thing cup-and-handle ranges: $0.147 and $0.158, break first.

None of those breakouts seems possible until CMF turns constructive and bulls regain power on the 4-hour chart.

The draw back stays clearer than the upside. A every day shut beneath $0.140 exposes $0.122, the November 21 low, and a very powerful help on the chart. A drop beneath $0.140 would additionally invalidate the cup-and-handle formation from earlier.

One extra element issues: the decrease trendline of the falling channel has solely two clear contact factors, which makes it structurally weaker. That means breaking beneath it might not require a lot effort if promoting stress will increase once more.

To invalidate the bearish setup, HBAR should reclaim $0.169 first after which $0.182. Moving above these ranges flips the construction and opens a path towards $0.198, however this requires robust bull energy and a full CMF restoration.

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