Will the HBAR Token Price Face Correction? | Airdrop Alert Pro

HBAR, the native cryptocurrency of the Hedera Hashgraph network, is up more than 180% in the past week. It is currently trading at $0.13, with the last price high observed in April 2024.

However, this rapid rise has pushed the coin’s price into overbought territory. This overextension suggests that a price correction for the HBAR token may be imminent.

Ivy traders raise their prices excessively

Readings from HBAR Relative Strength Index (relative strength index) confirms that its market is overheated. As of this writing, the indicator is at an all-time high of 92.35.

RSI measures market conditions that indicate overbought and oversold conditions for an asset. It ranges from 0 to 100, with values ​​above 70 indicating that the asset is overbought and should fall. Conversely, values ​​below 30 indicate that the asset is oversold and may be due for a rebound.

HBAR’s RSI reading is 92.35, indicating that it is in extremely overbought territory. This suggests that HBAR buyers are significantly outpacing sellers, causing prices to reach unsustainable levels. While asset prices may continue to rise in the short term, an RSI this high is usually followed by a correction or pullback.

Furthermore, the price of HBAR has breached the upper limit band Changes in the Bollinger Bands indicator also confirmed the overbought status of market participants.

Bollinger Bands indicator measures the market volatility and identify potential buy and sell signals. It consists of three main parts: the middle band, the upper band and the lower band.

The middle band is the 20-period moving average, which serves as the baseline for price trends. The upper band is calculated as the middle band plus two standard deviations of price, taking into account price fluctuations above the moving average. The lower band is the middle band minus two standard deviations of price and represents volatility below the moving average.

When the price is above the upper limit, it usually indicates that the asset is overbought as its price is significantly higher than the average price. This could signal the possibility of a price correction.

HBAR Price Prediction: A pullback is coming

Once buyers are exhausted, HBAR’s price will experience a correction. At current value, it is trading above support formed at $0.12. This price level will be tested when buying pressure begins to subside. Failure to hold could see the coin’s price plummet to $0.11.

However, if the upward trend continues, HBAR Token Will Return to Cycle Peak of $0.15 and attempts to rally above that level, thereby invalidating the bearish forecast above. A successful move above this level would put HBAR on the path to a year-to-date high of $0.18.