HBAR has been on a downward trajectory recently, with the altcoin struggling to maintain its value. The price action has left investors facing losses, and recent developments point to the potential for further bearish pressure.
This has raised concerns about HBAR’s ability to stay above crucial support levels in the near future.
Hedera Is Facing Bearish Challenges
The Exponential Moving Averages (EMAs) are close to forming a Death Cross, a bearish signal that typically indicates a market downturn. The Death Cross occurs when the 50-day EMA crosses below the 200-day EMA, and the latter stands only 7.7% away from taking over the former. In the case of HBAR, this pattern suggests that the altcoin is facing increasing selling pressure.
With the formation of a Death Cross looming, traders and investors are growing more cautious. The market sentiment is increasingly bearish, as the technical signals indicate that the altcoin might not have the strength to break above key resistance levels.
The broader market conditions are also adding to HBAR’s struggles. The Relative Strength Index (RSI), a popular technical indicator used to assess the momentum of an asset, has been stuck in the bearish zone since early March. This suggests that the downward momentum has been sustained for weeks and is worsening as the market sentiment weakens.
Additionally, recent price action has actually pushed RSI deeper into the bearish zone.
As the broader market continues to show signs of weakness, HBAR’s price is unlikely to see significant relief. The ongoing bearish sentiment surrounding HBAR suggests that a recovery may not be imminent without a significant shift in market conditions.
HBAR Price May Witness Further Decline
At the time of writing, HBAR is trading at $0.171, struggling to break above the $0.177 resistance level. The altcoin recently fell below this support level after an unsuccessful attempt to break past $0.197. Given the current market conditions, HBAR is now at risk of slipping below the critical $0.154 support.
If the bearish trend persists, HBAR could see a drop to $0.154, and losing this support would likely send the altcoin tumbling further. The next support level to watch would be $0.133, which could act as the last line of defense before a deeper decline. With weak investor support and overall market sentiment, this drop remains a strong possibility.
However, if HBAR manages to reclaim the $0.177 support level and breaks through the $0.197 resistance, it could trigger a shift in sentiment. A successful breach could lead to a move above $0.200, invalidating the bearish outlook and potentially setting the stage for a more significant recovery.
Disclaimer
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