HBAR, the native crypto token of the Hedera network, is attempting a recovery rally, but lacks necessary support to maintain upward momentum.
With broader market cues turning bearish and weakening investor sentiment, the altcoin could face further declines, extending recent losses. The formation of a Death Cross may indicate additional struggles for HBAR holders.
Hedera Is Facing A Challenge
The Exponential Moving Averages (EMAs) for HBAR are nearing the formation of a Death Cross, a bearish indicator that could push prices lower. A Death Cross occurs when the 200-day EMA crosses over the 50-day EMA, indicating a shift toward downside momentum. The last occurrence was in June 2024, leading to a five-month downtrend and significant price decline.
Currently, there is a 13% gap before the 200-day EMA overtakes the 50-day EMA, suggesting the likelihood of the Death Cross is increasing. If this occurs, momentum could shift further negative, making recovery more challenging for HBAR.
Investor sentiment has been primarily negative this month. While February had a brief bullish period, it quickly faded, leaving HBAR without substantial support. This lack of investor conviction is concerning and might hinder any upward movement.
The cautious sentiment reflects broader uncertainty within the crypto market. Should this pattern persist, HBAR may encounter additional challenges, delaying any potential recovery. The failure to regain momentum could keep the altcoin in a prolonged downtrend, raising risks for investors.
HBAR Price Is Struggling
HBAR’s price is currently trading at $0.187, within a descending channel. The altcoin is nearing a critical support level at $0.177, which it may test or potentially breach soon. A failure to maintain support at $0.177 could indicate further downside risks for the altcoin.
If HBAR breaks through the $0.177 support level, the next key level to monitor is $0.154, which would signal a deeper decline and extend losses for investors, possibly delaying recovery. At this stage, consolidation could become the prevailing scenario, with HBAR finding it difficult to regain bullish momentum.
However, if HBAR can turn $0.195 into support and exceed $0.222, it might invalidate the bearish outlook and trigger a breakout, shifting the trend toward recovery and instilling hope for a sustained rally.
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