HBAR forms a death cross after 11 months – Weak capital flow threatens recovery prospects

Hedera (HBAR) is still struggling to regain its upward momentum after a strong correction of up to 27% at the end of March.

Despite short-term recovery efforts, the current price action of HBAR is sending a series of negative signals. Most notably, the emergence of a death cross — the first time in 11 months — indicates that the risk of a deeper correction remains present.

Hedera continues to record bearish signals

The "death cross" pattern that has just formed is a notable technical signal for HBAR. For the first time in nearly 11 months, the 50-day exponential moving average (EMA) has crossed below the 200-day EMA – a signal often associated with a clear bearish trend. This event not only marks the end of a five-month-long bullish streak but also increases concerns about the possibility of a deeper correction in the near future.

Notably, this pattern appears in the context of HBAR still struggling to recover after a sharp decline in March. A cautious sentiment is enveloping investors, as the death cross pattern has long been regarded as a warning about the possibility of the market continuing to weaken. With the upward momentum showing signs of faltering and market confidence gradually waning, the short-term outlook for HBAR is facing several challenges.

Daily HBAR/USDT Chart | Source: TradingViewIn terms of money flow, the Chaikin Money Flow indicator (CMF) is currently still below the 0 threshold – reflecting prevailing selling pressure and indicating that the inflow of money into HBAR is significantly weakening. This is a prolonged negative signal, indicating that demand in the market is at a low level, and investor sentiment remains quite cautious. CMF, which is a measure of the accumulation and distribution of assets, is currently showing the dominance of pessimistic sentiment.

Although HBAR has made a few attempts at recovery, the lack of large cash flow from investors means that recent price increases are not strong enough to establish a sustainable trend. In the context of the market not showing a willingness to support price increases, it is likely that HBAR will continue to fluctuate within a narrow range, and may even continue to correct if a strong enough catalyst does not appear to reverse market sentiment.

Chaikin Money Flow (CMF) of Hedera | Source: TradingView## HBAR price has no clear direction yet

In the past 24 hours, the price of HBAR has dropped by 6%, currently hovering around the $0.16 mark. After the adjustment at the end of March, this altcoin is trying to recover, with hopes of surpassing the key barrier at the $0.19 level. However, in the context of the overall market sentiment still being bleak, that effort may face significant resistance.

If selling pressure continues to dominate, HBAR risks breaking through the current support level at $0.16 and sliding down to the $0.15 range. Such a scenario would erase much of the recent recovery momentum, while also increasing the risk of a deeper decline. The uncertainty in the market only adds to the pressure, making the short-term outlook for this coin even more bleak.

Daily HBAR/USDT Chart | Source: TradingViewThe only way out of the current downtrend is for HBAR to break above the resistance zone of $0.17 soon and turn it into a solid support level. If buying pressure is strong enough to maintain upward momentum beyond the $0.19 mark, it will signal that confidence is returning – paving the way for a potential move back to the $0.20 area and beyond. Only then will HBAR truly escape the current bearish pattern to enter a more sustainable recovery cycle.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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