Hedera (HBAR) Faces 27% Correction, Death Cross Signals Bearish Trend

Hedera (HBAR) has been struggling to regain momentum following a 27% correction that occurred at the end of March. Despite efforts to recover, the cryptocurrency's price action has shown troubling signs, including the formation of a death cross after 11 months. This technical indicator suggests that the situation may worsen, as the 200-day exponential moving average (EMA) has crossed below the 50-day EMA for the first time in nearly a year. This event marks the end of a five-month bullish streak for HBAR and typically signals a bearish trend for price action.

This death cross comes at a time when HBAR’s price has failed to recover from the March correction. Traders and investors are wary, as a death cross usually implies further downside potential. With the lack of momentum and increasing market hesitation, HBAR could face additional challenges moving forward.

The Chaikin Money Flow (CMF) indicator remains stuck below the zero line, signaling weak inflows into HBAR. This continued bearish signal suggests that investor confidence in the asset is low. The CMF tracks the accumulation and distribution of an asset, and its current position indicates that skepticism is dominating the market. Despite recent attempts at price recovery, the absence of strong investor inflows has held back any significant uptrend. The market’s reluctance to push HBAR higher may point to further consolidation or even additional declines unless positive catalysts emerge. Without strong support, HBAR’s price could remain subdued in the near future.

HBAR’s price is down 6% over the last 24 hours, trading at $0.16. The altcoin is currently trying to recover the losses from late March, with a target of breaking through the $0.19 resistance. However, if the broader market sentiment remains weak, HBAR may struggle to break these barriers. If bearish conditions persist, HBAR could see a further decline through the $0.16 support, potentially dropping to $0.15. Such a move would erase part of the recent recovery and push the price even lower. The market’s uncertainty could cause further downward pressure, adding to the current challenges for the asset.

The only way for HBAR’s bearish outlook to be invalidated is if it can flip the $0.17 resistance level into support. A sustained push beyond $0.19 would be a sign of renewed confidence and could lead the altcoin back toward the $0.20 mark. Only then could HBAR break free from the bearish pattern and aim for a sustained recovery.