Hedera (HBAR) is experiencing a severe bearish downturn, with its price hitting a two-month low and traders rapidly withdrawing capital from the market. The token's price has fallen 21% over the past nine days, trading near $0.109 after slipping below the critical $0.110 support level. This breakdown has invalidated a key high-time-frame support area that bulls had previously relied upon to slow the downtrend.
The technical outlook is decisively negative, with HBAR's market structure defined by consecutive lower highs and lower lows, a classic indicator of seller dominance. The loss of the $0.11 support has significantly increased downside risk, with analysts now targeting a deeper corrective move toward the $0.07 yearly low. This level is seen as a natural magnet for price during sustained weakness and an area where significant liquidity resides.
Futures market data underscores the collapsing sentiment. Open interest in HBAR derivatives has plummeted from $140 million to $104 million in just four days, representing a $36 million withdrawal by traders closing leveraged positions. This rapid capital flight reflects fading confidence in a near-term price rebound and suppresses volatility-driven recoveries, making stabilization more challenging.
Technical indicators show HBAR is deeply oversold, with its Relative Strength Index (RSI) slipping below the 30.0 threshold. While such conditions can sometimes precede a selling slowdown or attract value-focused buyers, the current bearish structure remains intact. For any shift in bias to occur, HBAR would need to break its sequence of lower highs, reclaim key resistance levels like $0.125, and demonstrate a clear structural reversal—conditions currently absent from the charts.
