HBAR, the native crypto token of the Hedera network, has recently attempted a recovery rally

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.

The price of HBAR, the native crypto token of the Hedera network, has recently attempted a recovery rally. However, the lack of support for the cryptocurrency could lead to further price declines and extend recent losses.

Broader market cues have turned bearish, and a lack of conviction among investors may limit altcoin gains and complicate efforts to maintain upward momentum. Additionally, the Exponential Moving Averages (EMAs) are nearing the formation of a Death Cross, which could signal additional struggles ahead for HBAR holders.

A Death Cross occurs when the 200-day EMA crosses over the 50-day EMA, indicating that the broader market momentum is shifting toward the downside. This event usually coincides with a prolonged downtrend.

The last time this happened for HBAR was in June, when the crypto entered a five-month bearish trend and saw a 60% decline from May to October 2023.

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, it could put even more momentum on the negative side, and HBAR might struggle to recover.

A lack of investor sentiment may limit any potential gains. 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 may make further upward movement 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’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.