“Layer-1 Tokens Lose Steam — Market Turns Cautious as Momentum Fades Near Key Support Levels

Hedera’s native token, HBAR, is showing renewed weakness after a sharp rejection at the $0.20 resistance, signaling that bullish momentum may be fading fast. Trading volume has dropped significantly, hinting at declining investor confidence and a potential shift in short-term market sentiment.

Technically, HBAR remains in a fragile range between $0.12 and $0.20, with momentum indicators suggesting that a retest of the $0.12 Fibonacci support could be imminent. This level has historically served as a strong demand zone — a critical point that could determine whether the asset stabilizes or breaks lower.

Analysts warn that a sustained drop below $0.12 could trigger a deeper correction, extending the token’s consolidation phase and delaying any meaningful recovery.

Conversely, a rebound supported by renewed buying volume might restore confidence and open the path back toward the mid-$0.20 range.

For now, HBAR’s outlook remains cautious — trapped between fading bullish sentiment and mounting bearish pressure, the next few sessions could define its trajectory for the rest of the quarter.