In the past few trading sessions, the Hedera price has shown signs of recovery, rising by 6% in the first four trading sessions of the year. However, following a tumultuous year that saw Hedera’s price dropping by 27% last month and over 85% in 2022, the current price gains appear to be a price retracement rather than a price reversal.
In December, Hedera’s price dropped by almost 30% and extended a similar aggressive bearish trend from November. Hedera also closed 2022 with a drop in value of over 85%. Looking at the chart below, it appears that, technically, the current bullish move is a small retracement of a digital asset that is already in a long-term bearish trend.
On the fundamental side, there are many factors that are working against the recovery of Hedera, including the current industry-wide bear market. With Hedera being significantly correlated with the industry, the continued bearish trend of the industry will also mean a continued downward trend for Hedera.
Hedera’s continued development and positive fundamentals will also likely not impact its price to the upside if the current bear market continues. Therefore, despite its efforts, the factors that will impact its price will be out of its control, as seen in the past year when it dropped by over 85%.
Based on both the technical and fundamental analysis above, I expect the current push to the upside to end soon and Hedera to resume its long-term bearish trend. There is a high likelihood that we might see it trading below the $0.02 price level in the next few trading sessions. There is also a high likelihood that we may not see it hitting the $0.1 price level for the next few months. However, a trade above the $0.05 price level will invalidate my bearish trend analysis.
This post was last modified on Jan 04, 2023, 15:24 GMT 15:24