HBAR Faces Bearish Trend as Death Cross Looms, Price Drops 13%

HBAR, the native cryptocurrency of the Hedera network, has recently attempted a recovery rally. However, the price lacks the necessary support to maintain its upward momentum. The broader market cues have turned bearish, and investor sentiment has weakened, which could lead to further price declines and extend recent losses. The formation of a Death Cross, a bearish indicator, may signal additional struggles ahead for HBAR holders.

The Exponential Moving Averages (EMAs) for HBAR are nearing the formation of a Death Cross. This occurs when the 200-day EMA crosses over the 50-day EMA, indicating that the broader market momentum is shifting toward the downside. The last time this happened was in June 2024, resulting in a prolonged downtrend that lasted for five months and caused a significant price decline. Currently, there is a 13% gap before the 200-day EMA overtakes the 50-day EMA, suggesting that the Death Cross is becoming increasingly likely. If this happens, the momentum could shift even further into the negative, and HBAR might struggle to recover.

Investor sentiment has been negative for most of this month. Although February saw a brief period of bullish activity, it quickly faded, leaving HBAR without significant support. This lack of conviction among investors is concerning, as it suggests that further upward movement may be difficult to sustain. The cautious sentiment of investors reflects the broader uncertainty in the crypto market. If this pattern continues, HBAR could face additional headwinds, further delaying its recovery. The inability to regain momentum could keep the altcoin stuck in a downtrend for an extended period, increasing the risk for investors.

HBAR’s price is currently trading at $0.187, moving within a descending channel. The altcoin is approaching the critical support level of $0.177, and it is likely that HBAR could test this support or potentially break through it in the near future. A failure to hold at $0.177 could signal further downside risk for the altcoin. If HBAR breaks through the $0.177 support, the next key level to watch is $0.154. This would represent a deeper decline and extend losses for investors, potentially delaying recovery for the cryptocurrency. At this point, consolidation could become the most likely scenario, with HBAR struggling to regain bullish momentum.

However, if HBAR manages to flip $0.195 into support and push past $0.222, it could invalidate the bearish outlook and trigger a breakout. Such a move would shift the trend toward recovery, offering hope for a sustained rally. The current market conditions and investor sentiment pose significant challenges for HBAR. The formation of a Death Cross and the lack of support from investors suggest that the altcoin may face further declines. However, if HBAR can overcome these obstacles and regain bullish momentum, it could potentially trigger a breakout and shift the trend toward recovery.