The 5% rally of Hedera (HBAR) is not solid as sell pressure surges.

HBAR Token of Hedera has risen 5% in the past week, driven by increased investor demand and altcoin activity rising to the sky.

However, despite the short-term growth, current technical indicators show that momentum is fading, signaling the potential for a price decline in the coming days.

The short-term price increase of HBAR is threatened by weakening bullish pressure

The one-day HBAR/USD chart analysis shows that the altcoin is currently testing the 20-day (EMA) exponential moving average. HBAR is currently trading at $0.153, right near this important EMA line, forming a dynamic support level at $0.153.

The 20-day EMA of HBAR | Source: TradingViewThe 20-day EMA measures the average price of an asset over 20 trading days. When the price of the asset is about to fall below the 20-day EMA line, it signals that short-term momentum is weakening.

The fact that HBAR has dropped below this important moving average confirms that selling pressure has outweighed buying activity. If no strong buying force appears, the asset may enter a correction phase or even begin a new downtrend.

Moreover, the indicators from the Elder-Ray Index of the altcoin also support the bearish outlook. In the past three trading sessions, the green bars that make up the indicator have seen their size shrink. This contraction reflects weakening growth confidence, reinforcing the risk of a short-term reversal.

Elder-Ray index of HBAR | Source: TradingViewThis indicator measures the strength of the bulls and bears in the market. When it prints green bars, it indicates the dominance of buyers and increasing bullish momentum.

However, when these bars shrink, it signals a decrease in the accumulation of tokens, as in the case of HBAR.

The fragile growth of HBAR is under threat

This trend indicates that HBAR may struggle to maintain its upward momentum unless new buying pressure returns. In the meantime, it may see a pullback. If a sell-off spikes, the price of HBAR could slip down to $0.141.

If strong selling pressure arises at this support level, the token price could drop to $0.124.

HBAR price analysis | Source: TradingViewConversely, renewed demand for HBAR may invalidate bearish prospects. If new buyers enter the market, they could push the value of this altcoin above $0.162.

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