Hedera (HBAR) Flirts With a Death Cross as Funding Turns Choppy

Hedera (HBAR) price is witnessing a concerning trend reversal after weeks of attempts to sustain bullish momentum. 

The altcoin had been validating a potential breakout pattern, but mounting bearish pressure threatens to derail it. The current trajectory suggests that the bullish setup may fail as technical indicators flash red.

Hedera Faces A Death Cross

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 shift in market structure. A completed Death Cross would indicate accelerating bearish momentum for HBAR.

This development marks the end of a three-month-long Golden Cross that had previously supported upward movement. As sentiment weakens, traders are turning cautious, with selling pressure rising across exchanges. Historically, Death Cross formations have preceded notable price corrections, suggesting HBAR may struggle to maintain its bullish structure.

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HBAR Death Cross. Source:  TradingView

The funding rate in the HBAR derivatives market reflects heightened uncertainty among Futures traders. Over the past few days, the rate has fluctuated significantly, indicating indecision between long and short positions. Such instability highlights a lack of conviction, leaving HBAR’s short-term direction vulnerable to broader market shifts.

Without a clear bias toward bullish or bearish positioning, HBAR could remain range-bound or even slip further as liquidity dries up. For any meaningful recovery, a return of investor confidence and positive funding rate stability will be essential.

HBAR Funding Rate. Source: Coinglass

HBAR Price Could Fail

HBAR is trading at $0.159 at press time, moving within a descending broadening wedge pattern. While this formation is typically considered bullish, prevailing technical and sentiment indicators suggest potential failure.

If bearish pressure intensifies, HBAR could fall through the downtrend line. This could result in the altcoin slipping below $0.154 and targeting $0.145 in the coming days.

HBAR Price Analysis. Source:  TradingView

Conversely, if the three-month pattern remains intact, a reversal may propel HBAR above $0.180 and $0.188, eyeing a move to $0.198. This breakout would invalidate the bearish thesis and restore confidence among investors.