Hedera’s HBAR token is showing signs of weakness after a firm rejection from the $0.20 resistance zone. With trading volume steadily declining, the price appears vulnerable to a deeper correction toward the next key support level at $0.12.

Key Resistance Halts Momentum

The $0.20 level has proven to be a formidable barrier for HBAR, aligning with both a high-timeframe resistance and the value area low. The recent attempt to rally into this zone was met with swift selling pressure, shifting the market’s short-term momentum back to the downside. This rejection was accompanied by fading trade volume, a classic technical signal that suggests weakening demand and buyer hesitation.

While news of Canary Capital submitting revised filings for a potential spot Hedera Exchange-Traded Fund (ETF) has drawn attention to the asset, it hasn’t been enough to fuel a sustained breakout. With buyers stepping back, HBAR has entered a consolidation phase characterized by lower market participation and a lack of clear directional bias.

Eyes on the $0.12 Support Level

Analysts are now closely watching the $0.12 support level. This price point is significant as it aligns with the 0.618 Fibonacci retracement and represents a major structural support area. If the current low-volume environment persists, HBAR is likely to continue consolidating in the range between $0.12 and $0.20.

A breakdown below $0.12 could open the door for further downside, signaling a more significant bearish trend. Conversely, for a recovery to begin, bulls would need to reclaim the $0.20 resistance with a substantial increase in trading volume to confirm renewed market strength.

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