Hedera (HBAR) is still struggling to regain momentum after a sharp correction of up to 27% at the end of March.
Despite short-term recovery efforts, HBAR's price action is currently sending a series of negative signals. Most notably, the appearance of death cross pattern — the first time in 11 months — indicates that the risk of deeper correction still exists.
The recently formed "death cross" pattern 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 typically associated with a clear downward trend. This event not only marks the end of the price increase over the past five months but also increases concerns about the possibility of a deeper correction in the near future.
Notably, this pattern appears when HBAR has not yet recovered from the sharp decline in March. Cautious sentiment is covering investors, as the death cross has long been seen as a warning about the market's continued weakness. With momentum slowing down and market confidence gradually declining, HBAR's short-term prospects are facing many challenges.
In terms of cash flow, the Chaikin Money Flow (CMF) indicator remains below the 0 threshold – reflecting the dominance of selling pressure and showing that cash flow into HBAR is clearly weakening. This is a prolonged negative signal, indicating low market demand and investors' cautious sentiment. The CMF, which measures the level of asset accumulation and distribution, is currently showing the dominance of pessimistic sentiment.
Although HBAR has made some recovery efforts, the lack of significant cash flow from investors means that recent price increases are not strong enough to create a sustainable trend. In a market that has not yet shown readiness to support price increases, HBAR is likely to continue fluctuating within a narrow range, and may even continue to adjust if no strong catalyst emerges to reverse market sentiment.
In the past 24 hours, HBAR's price has dropped 6%, currently fluctuating around $0.16. After the adjustment at the end of March, this altcoin is trying to recover, with expectations of potentially breaking through the key resistance at $0.19. However, in the context of the overall market sentiment still being gloomy, this effort may face significant resistance.
If selling pressure continues to dominate, HBAR risks breaking through the current support level at $0.16 and sliding to the $0.15 area. Such a scenario would blur most of the recent recovery momentum and expand the risk of deeper decline. The market's uncertainty only increases the pressure, making the short-term prospects of this coin even more bleak.
The only way out of the current downward trend is for HBAR to quickly break above the $0.17 resistance zone and turn it into a solid support. If buying pressure is strong enough to maintain upward momentum beyond $0.19, it would be a signal that confidence is returning – paving the way for the possibility of returning to the $0.20 area and beyond. Only then would HBAR truly escape the current price decline pattern and enter a more sustainable recovery cycle.
Disclaimer: The article is for informational purposes only, not investment advice. Investors should research carefully before making decisions. We are not responsible for your investment decisions.
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