Hedera (HBAR) price is witnessing a worrying trend reversal after weeks of attempts to maintain bullish momentum.
Altcoins were testing a potential breakout pattern, but increasing bearish pressure threatens to derail it. The current trajectory suggests that the bullish setup may fail as the technical indicator flashes red.
Hedera facing the cross of death
The 50-day and 200-day exponential moving averages (EMAs) are on the verge of forming a death cross, a classic bearish signal. This event occurs when the 50-day EMA falls below the 200-day EMA, confirming a change in market structure. A completed death cross indicates that HBAR’s bearish momentum is accelerating.
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This development marks the end of the three-month golden cross that had supported the upward movement. Amid weakening sentiment, traders are becoming cautious and selling pressure is increasing on exchanges. Historically, death cross formations precede significant price corrections, suggesting that HBAR may struggle to maintain its bullish structure.
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Funding rates in the HBAR derivatives market reflect increased uncertainty among futures traders. Rates have fluctuated widely over the past few days, indicating indecision between long and short positions. Such volatility highlights a lack of belief, leaving HBAR’s near-term direction vulnerable to broader market changes.
Without a clear bias in bullish or bearish positioning, HBAR may remain range-bound or fall further as liquidity dries up. A return to investor confidence and positive stabilization of funding rates are essential for a meaningful recovery.
HBAR price can fail
HBAR is trading at $0.159 at the time of writing, staying within a descending expansion wedge pattern. Although this formation is generally considered bullish, common technical and sentiment indicators point to potential failure.
If bearish pressure increases, HBAR may break out of the downtrend line. This could push the altcoin below $0.154 and potentially target $0.145 in the coming days.
On the other hand, if the 3-month pattern holds, a reversal could push HBAR above $0.180 and $0.188, with a move towards $0.198. This breakout will invalidate bearish theories and restore investor confidence.
