HBAR, the native crypto token of the Hedera network, has recently attempted a recovery rally, but the price lacks the support needed to maintain its upward momentum. 

With broader market cues turning bearish and investor sentiment weakening, the altcoin could face further price declines, extending recent losses. The formation of a Death Cross may signal additional struggles ahead for HBAR holders.

Hedera Is Facing A Challenge

The Exponential Moving Averages (EMAs) for HBAR are nearing the formation of a Death Cross, a bearish indicator that could push prices lower. A Death Cross occurs when the 200-day EMA crosses over the 50-day EMA, signaling that the broader market momentum is shifting toward the downside. The last time this happened was in June 2024; HBAR entered a prolonged downtrend that lasted for five months and resulted in a significant price decline.

Currently, there is a 13% gap before the 200-day EMA overtakes the 50-day EMA. This suggests that the Death Cross is becoming increasingly likely. If this happens, the momentum could shift even further into the negative, and HBAR might struggle to recover.

Investor sentiment has been negative for most of this month. Although February saw a brief period of bullish activity, it quickly faded, leaving HBAR without significant support. This lack of conviction among investors is concerning, as it suggests that further upward movement may be difficult to sustain.

The cautious sentiment of investors reflects the broader uncertainty in the crypto market. If this pattern continues, HBAR could face additional headwinds, further delaying its recovery. The inability to regain momentum could keep the altcoin stuck in a downtrend for an extended period, increasing the risk for investors.

HBAR Price Is Struggling

HBAR’s price is currently trading at $0.187, moving within a descending channel. The altcoin is approaching the critical support level of $0.177, and it is likely that HBAR could test this support or potentially break through it in the near future. A failure to hold at $0.177 could signal further downside risk for the altcoin.

If HBAR breaks through the $0.177 support, the next key level to watch is $0.154. This would represent a deeper decline and extend losses for investors, potentially delaying recovery for the cryptocurrency. At this point, consolidation could become the most likely scenario, with HBAR struggling to regain bullish momentum.

However, if HBAR manages to flip $0.195 into support and push past $0.222, it could invalidate the bearish outlook and trigger a breakout. Such a move would shift the trend toward recovery, offering hope for a sustained rally.