Hedera (HBAR) is struggling to maintain its position above crucial support levels as technical indicators point toward increasing bearish momentum. With the possibility of a Death Cross formation looming, investors are growing increasingly cautious about the altcoin’s future trajectory.
Death Cross Signals Bearish Market Trends
HBAR’s Exponential Moving Averages (EMAs) are nearing a Death Cross, a bearish technical pattern that occurs when the 50-day EMA crosses below the 200-day EMA. Currently, the 200-day EMA is only 7.7% away from overtaking the 50-day EMA, a development that typically signals a prolonged market downturn.
The potential formation of the Death Cross is adding to traders’ concerns, as it reflects increasing selling pressure. Furthermore, the Relative Strength Index (RSI) has been firmly entrenched in the bearish zone since early March. The RSI’s continued decline indicates weakening momentum, making it difficult for HBAR to push past key resistance levels.
HBAR Struggles Against Resistance Levels
At the time of writing, HBAR is trading at $0.171, struggling to reclaim the $0.177 resistance level. The altcoin recently dropped below this threshold after failing to break past $0.197, reinforcing the bearish sentiment.
Should the current downward trend persist, HBAR risks slipping further to the critical $0.154 support level. Losing this level could open the door for a deeper decline toward $0.133, which may serve as the last line of defense before a more significant downturn.
Potential for Recovery?
Despite the prevailing bearish outlook, a recovery scenario remains possible if HBAR manages to reclaim the $0.177 support level and successfully breaks past $0.197. A move beyond $0.200 could shift market sentiment and potentially invalidate the bearish structure.
Also Read: Hedera (HBAR) DeFi Surges 194% in TVL as Price Soars 367% – Is More Growth Ahead?
For now, however, HBAR remains under pressure, with weak investor confidence and broader market struggles limiting its potential for a breakout. Traders will be closely watching support and resistance levels for any signs of a potential trend reversal in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
