HBAR Near Breakout Zone but Investor Hesitation Threatens Momentum

Hedera’s native token, HBAR, is on the verge of a crucial breakout after weeks of consolidation, yet investor caution may dampen its rally. The altcoin’s recent surge has brought it close to breaching a key three-month resistance pattern, highlighting a potential shift in market sentiment—though on-chain indicators suggest mixed signals.

Currently trading around $0.224, HBAR is testing resistance near $0.230, the upper boundary of its descending wedge. A sustained move above this level could trigger a strong bullish breakout, potentially pushing prices toward $0.242. However, failure to close above resistance could lead to a pullback toward $0.219, $0.213, or even $0.205.

From a technical perspective, the Relative Strength Index (RSI) has climbed above the neutral 50 mark, reflecting renewed buying pressure and improving momentum. This shift aligns with the broader crypto market’s optimism, supported by recent gains in Bitcoin (BTC) and other major assets. The improving macro backdrop offers a favorable environment for HBAR’s potential recovery.

Yet, investor sentiment remains uncertain. The Chaikin Money Flow (CMF) indicator recently fell below the zero line, marking its lowest point in a month. This decline signals weakening capital inflows and reduced investor confidence, even as broader market conditions strengthen. The divergence between price action and investor behavior underscores the cautious mood surrounding HBAR’s next move.

If bullish momentum continues and liquidity returns, HBAR could confirm a breakout above $0.230, signaling a new upward phase. However, if investors remain hesitant, the token risks another failed rally.