Hedera network users and developers faced their first network downtime event on March 9th. Hedera joins Solana, which has had many network outages, including a recent one.
Developers initially blamed smart contract inconsistencies for the network disruption, which prevented many customers from accessing services. After additional examination, Hedera's smart contract service code was exploited by attackers. The development team disabled mainnet network proxies to protect users, harming Hedera DApps and services. The exploit was stopped by pausing the Hashport bridge, which attackers used to move stolen tokens.
Investor confidence can drop during network outages. Because Hedera's native cryptocurrency HBAR was already negative, the downtime's impact is hard to assess. HBAR's weighted sentiment metric started the week lower, indicating a pessimistic outlook. Nonetheless, the same gauge rose, suggesting investors expect a pivot following the protracted retracement.
Hedera native token HBAR fell over 39% from the yearly high, but it is not time to consider it a strong bearish trend.
Let’s see the upcoming price direction of Hedara Network (HBAR) from the HBARUSD technical analysis:
HBAR/USD Trades In A Bullish Trend
In the weekly timeframe, the current price faces support at the 50% Fibonacci Retracement level from the 0.0355 low to the 0.0995 area. As the current price is still within the premium zone, any bearish momentum would increase the buying possibility as a mean reversion.
In the daily chart, a strong buying pressure is seen from the 0.0356 bottom from where a counter-impulsive momentum was seen.
The sharp upward pressure made a stable price above the dynamic 20 DMA and 100 SMA. After creating a base, the price made another higher high at the 0.0985 level. However, the situation changed as the news came regarding the network issue.
The buying momentum faded as the price rebounded below the 100-day SMA level. The latest high volume level from February to March is also above the current price, which indicates institutional traders' interest in selling this instrument.
The stability in the bearish trend is strong as the current ADX level has rebounded.
Based on the current daily outlook, the overall market direction is bearish, where any bullish correction may offer a short opportunity.
However, the current selling pressure is backed by a strong bull run since the beginning of 2023. In that case, the highly probable trading approach is to wait for a bullish rebound and a stable market above the 20-day EMA.
HBAR/USD Ichimoku Cloud Analysis
The H4 chart shows strong downside pressure as the recent price was below the Kumo Cloud with a stable trend. The consecutive lower low formation and several bearish rejections from the dynamic level have provided a strong downside possibility in the market.
However, the most recent chart showed a bullish momentum above the dynamic Kumo Cloud for the first time. Moreover, the buying pressure is backed by increased volatility from the 0.0543 bottom.
In the future cloud, the Senkou Span A and B are flat, which is a sign of an indecisive momentum. The Traders Dynamic Index (TDI) showed a strong upside possibility as the current level is above the 50% area.
Based on the H4 outlook, a bullish break above the 0.0631 level with an H4 close would validate the bullish possibility, targeting the 0.0800 area.
On the other hand, the existing trend is bearish, and any downside pressure below the dynamic Kijun Sen could resume the existing trend towards the 0.0400 area.
HBAR/USD Intraday Price Action Analysis
In the hourly chart, the current price trades below the visible range high volume level of 0.0651. However, a strong buying pressure is seen from the 0.0543 level, from where an impulsive counter pressure appeared with a candle close above the 20 EMA.
The indicator window shows a buying possibility as the current MACD Histogram is stable above the neutral line.
Based on the H1 market structure, a minor bullish possibility is visible where the main aim is to test the 0.0651 high volume level. However, stable buying pressure above the high volume level is needed to consider the long-term outlook as bullish.
The alternative approach is to wait for the price to come below the dynamic 20 EMA, which would lower the price towards the 0.0527 level.
Is HBAR/USD A Sell?
Based on the current market outlook, the broader market outlook is corrective, and it needs a strong bullish daily close to increase the buying possibility. Therefore, investors should monitor the intraday price, from where an early buying sign may come from the near-term support level.