Will the HBAR token price undergo a correction?

HBAR, the native cryptocurrency of the Hedera hashgraph network, has seen a meteoric rise of over 180% in the past week. It is currently trading at $0.13, this price was last seen in April 2024.

However, this rapid withdrawal has pushed the token's price into overbought territory. This overextension suggests that a price correction may be coming for the HBAR token.

Hedera traders inflated the prices too much.

The Relative Strength Index (RSI) reading from HBAR confirms that the market is overheated. At this writing, the indicator stands at 92.35, an all-time high.

The RSI measures the overbought and oversold market conditions of an asset. It ranges between 0 and 100, and values ​​above 70 indicate that the asset is overbought and due to decline. Conversely, values ​​below 30 indicate that the asset is oversold and may experience a pullback.

The HBAR RSI reading of 92.35 indicates that it is in overbought territory. The HBAR suggests that buyers are outpacing sellers, pushing the price to unsustainable levels. While the asset price may continue to rise in the short term, such a high RSI usually precedes a correction or pullback.

Additionally, the HBAR price breached the upper band of the Bollinger Bands indicator, also confirming overbought among market participants.

The Bollinger Bands indicator measures market volatility and identifies potential buy and sell signals. It consists of three main parts: the middle band, the upper and the lower band.

The middle band is a 20-period moving average that serves as a starting point for the price trend. The upper band is calculated as the middle band plus two standard deviations of the price, which is the price fluctuation above the moving average. The lower band represents the volatility below the moving average minus two standard deviations of the middle band.

When the price trades above the upper band, it indicates that the asset is overbought because it is significantly higher than the average price. This could indicate the possibility of a price reversal.

HBAR Price Forecast: Return Period Presented

Once buyer fatigue sets in, HBAR prices will pull back. At the current price, it is trading above the support made at $0.12. When the buying pressure starts to disappear, it will test this price level. If it fails to catch on, the token price may drop to $0.11.

However, if the uptrend continues, the HBAR token will recapture the $0.15 cycle peak and attempt to surpass it, undermining the bearish forecast above. A successful break above this level would put HBAR on a year-to-date trading high of $0.18.