The price of Hedera (HBAR) is experiencing a troubling trend reversal following weeks of efforts to maintain bullish momentum.
This altcoin had been confirming a potential breakout pattern, but increasing bearish pressure risks undermining it. The current trend indicates that the bullish setup could collapse as technical indicators signal red.
Hedera Confronts A Death Cross
The 50-day and 200-day Exponential Moving Averages (EMAs) are nearing the formation of a Death Cross, a traditional bearish signal. This event occurs when the 50-day EMA drops below the 200-day EMA, signaling a shift in market structure. A confirmed Death Cross would suggest an increase in bearish momentum for HBAR.
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This development signals the end of a three-month-long Golden Cross that had previously bolstered upward movement. As sentiment weakens, traders are becoming more cautious, with selling pressure mounting across exchanges. Historically, Death Cross formations have preceded significant price corrections, indicating HBAR may have difficulty maintaining its bullish structure.
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The funding rate in the HBAR derivatives market mirrors increased uncertainty among Futures traders. In recent days, the rate has seen considerable fluctuations, signaling indecision between long and short positions. This instability underscores a lack of conviction, leaving HBAR’s short-term direction susceptible to broader market changes.
In the absence of a clear bullish or bearish bias, HBAR may remain trapped in a range or even decline further as liquidity tightens. For any substantial recovery, a resurgence in investor confidence and stabilizing funding rates will be crucial.
HBAR Price May Fail
As of now, HBAR is trading at $0.159, moving within a descending broadening wedge pattern. While this pattern is generally viewed as bullish, the existing technical and sentiment indicators indicate a potential failure.
If bearish pressure escalates, HBAR could break through the downtrend line, potentially dipping below $0.154 and targeting $0.145 in the forthcoming days.
On the other hand, if the three-month pattern persists, a reversal could push HBAR above $0.180 and $0.188, setting sights on $0.198. Such a breakout would negate the bearish outlook and rekindle investor confidence.
