HBAR Hits Death Cross After 11 Months As Weak Inflows Stall Price Recovery

Hedera (HBAR) has struggled to regain momentum after the 27% correction that took place at the end of March.

Despite attempts at recovery, HBAR’s price action is now showing troubling signs, including the formation of a death cross after 11 months, suggesting the situation may worsen.

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, trading at $0.16. The altcoin is currently trying to recover the losses from late March, with a target of breaking through the $0.19 resistance. However, if the broader market sentiment remains weak, HBAR may struggle to break these barriers.

If 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.