Hedera (HBAR) Faces Bearish Momentum as Trading Volume Drops and Death Cross Threatens Price Stability

Hedera (HBAR) is facing growing market pressure as key technical indicators weaken, signaling a possible shift toward bearish territory. Once boasting a market capitalization above $7 billion, the cryptocurrency has slipped below that threshold amid falling investor interest and declining trading volume.

Over the past 24 hours, HBAR’s trading volume has dropped by 25%, now standing at approximately $203 million. This sharp decrease highlights waning participation, a trend echoed by several critical technical metrics.

Weakening Trend Signals Emerge

The Bollinger Band Trend (BBTrend) indicator, a measure of market volatility and trend strength, has dipped significantly—now at 5.84 compared to 11.99 just two days ago. A BBTrend value above 10 typically indicates strong trend momentum; falling below that mark suggests a cooling off and potential consolidation. This downward shift points to reduced volatility and possibly the end of HBAR’s recent bullish momentum.

Another red flag is Hedera’s Relative Strength Index (RSI), which has dropped from a robust 63.12 to 44.67. The RSI helps traders understand market sentiment and the balance between buying and selling forces. With readings now below the neutral 50 threshold, the signal is clear: sellers are gaining control. Continued declines in RSI could indicate deeper corrections unless buying pressure returns soon.

Death Cross on the Horizon?

Hedera’s Exponential Moving Averages (EMAs) are nearing a "death cross"—a chart pattern where a short-term EMA crosses below a long-term EMA, often interpreted as a strong bearish signal. If confirmed, this could reinforce downward pressure on HBAR’s price.

Currently, the asset is hovering near two key support levels at $0.156 and $0.153. Should these supports break, the next downside target could be around $0.124, especially if broader market sentiment remains cautious.

However, it’s not all bearish. Should HBAR rally and push above the $0.168 resistance level, a recovery scenario may emerge. A breakout at this point could open the door to further gains, potentially reaching $0.178 and even $0.20—if buying momentum builds.