HBAR, the native token of the Hedera network, has recently shown signs of attempting a price recovery

HBAR, the native token of the Hedera network, has recently shown signs of attempting a price recovery, but the situation is far from clear.

HBAR, the native token of the Hedera network, has recently shown signs of attempting a price recovery, but the situation is far from clear. Despite a slight recovery attempt, the cryptocurrency has failed to sustain the upward momentum that many investors had hoped for, leaving it vulnerable to further price declines.

The formation of a potential Death Cross, along with weakening investor sentiment, is raising concerns over HBAR’s short-term recovery prospects.

Technical Analysis: The Threat of the Death Cross

One of the most concerning technical indicators for HBAR right now is the potential formation of a Death Cross. This happens when the 200-day Exponential Moving Average (EMA) crosses below the 50-day EMA, signaling a shift in market momentum from bullish to bearish.

The Death Cross is a well-known and often accurate indicator that previous downtrends have preceded significant price declines.

Currently, HBAR is encountering a 13% gap between the 50-day and 200-day EMAs, suggesting that the Death Cross is becoming increasingly likely. If this pattern plays out, HBAR could face a prolonged period of price decline, much like the last time this indicator appeared in June 2024.

At that time, HBAR entered a significant downtrend that spanned several months and resulted in a sharp decrease in value. However, if the 200-day EMA manages to cross above the 50-day EMA, it could serve as an indicator of bullish momentum.

In the chart above, we can observe that the 200-day EMA is approaching the 50-day EMA, increasing the likelihood of a Death Cross formation.

If the Death Cross materializes, the broader market sentiment could shift negatively, and HBAR could struggle to break out of the downtrend, leaving investors in a precarious position.

Investor Sentiment Remains Weak

Another key factor is the current sentiment among investors. While the cryptocurrency experienced a brief bullish rally in February, that optimism quickly faded. Investor confidence has been tepid since then, and HBAR’s inability to maintain momentum has left it without the support needed to fuel another rally.

The current market environment, which remains uncertain, has further dampened investor sentiment. With many investors already cautious after February’s short-lived price surge, the likelihood of another rally in the near term seems increasingly unlikely.

This lack of conviction among traders is troubling, as it suggests that HBAR may face more headwinds in its recovery, and the downward pressure could continue in the coming weeks.

Struggling Price Action and Key Support Levels

At present, HBAR is trading at around $0.187, within a descending price channel. The token is testing a critical support level at $0.177, which could be a pivotal point in determining its next move.

If HBAR fails to maintain this level, the price could break lower, setting the stage for a continuation of the broader downtrend and opening the door for further declines. The next significant support level lies at $0.154, and a drop to this price would extend the losses seen by investors and delay any potential recovery.

Conversely, if HBAR can successfully hold above $0.177 and push past the $0.195 resistance level, it could invalidate the bearish outlook and set the stage for a rebound.

A price move above $0.222 would further strengthen the case for a recovery, as it would signal that the market is willing to support HBAR once again, potentially leading to a sustained rally.

Delicate Balance for HBAR

For HBAR, the coming days and weeks will be crucial. The potential formation of a Death Cross and weak investor sentiment present significant challenges for the cryptocurrency, which is currently testing critical support levels.

If HBAR can maintain the support at $0.177 and begin to move back above the 50-day EMA, it could regain momentum and set the stage for a recovery toward the Fib. Retracement at $0.195. However, failure to do so could result in further price declines.

With investor sentiment remaining uncertain and the cryptocurrency markets facing ongoing volatility, navigating the technical analysis and investor mood will be crucial for determining the next leg of HBAR’s price trend.