-
Hedera (HBAR) has formed a death cross for the first time in 11 months, signaling the end of a five-month bullish streak and potential for further declines.
-
Weak investor inflows, as indicated by the Chaikin Money Flow (CMF), suggest low confidence and continued selling pressure on HBAR.
-
HBAR is currently trading at $0.16, and if it fails to reclaim the $0.17 resistance, further declines to $0.15 or lower are likely.
Hedera (HBAR) experiences a bearish shift as technical indicators signal a potential downturn in market sentiment and price action, currently at $0.16.
Hedera Continues To Note Bearishness
The formation of a death cross is a significant technical indicator for HBAR. For the first time in nearly 11 months, the 200-day exponential moving average (EMA) has crossed below the 50-day EMA. This event marks the end of a five-month bullish streak for the cryptocurrency 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 alike 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.
HBAR Death Cross. Source: TradingView
Looking at the overall market sentiment, 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 CMF. Source: TradingView
HBAR Price Has No Direction
HBAR’s price is down 6% over the last 24 hours, currently trading at $0.16. The altcoin is attempting to recover the losses from late March, aiming to break through the $0.19 resistance. However, if the broader market sentiment remains weak, HBAR may struggle to break these barriers.
Should 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.
HBAR Price Analysis. Source: TradingView
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.
Conclusion
In conclusion, Hedera’s recent technical indicators, particularly the death cross and lagging Chaikin Money Flow, point towards a challenging period ahead. The price dynamics suggest a critical need for HBAR to reclaim key resistance levels to steer clear of further declines. Investors should remain vigilant and assess market conditions closely in the days to come.
