Hedera (HBAR) has hit a significant technical milestone, forming a death cross for the first time in 11 months. This bearish signal comes after the altcoin has struggled to regain its footing following a 27% correction in March. The death cross, which occurs when the 50-day moving average (MA) crosses below the 200-day moving average (EMA), suggests that the cryptocurrency could face further declines, marking the end of a five-month bullish streak.

For most of 2024, HBAR showed impressive price growth, bouncing off key levels of support. However, the correction at the end of March triggered a reversal that has yet to be overcome. The death cross, now officially confirmed, serves as a warning to investors that HBAR may be in for further downside movement, especially if the market sentiment does not improve.

The technical indicator holds significance because it often foreshadows an extended bearish trend. Historically, the death cross has marked the beginning of downward momentum for various assets, including cryptocurrencies. The fact that it has occurred after such a long bullish run makes it a more alarming sign for traders.

Looking beyond the chart pattern, Hedera’s price action is being heavily influenced by weak investor inflows, as shown by the Chaikin Money Flow (CMF) indicator. The CMF tracks the accumulation and distribution of an asset, with a reading above zero indicating strong buying pressure. Currently, HBAR’s CMF remains stuck below the zero line, signifying that the market is under a constant state of distribution, meaning more coins are being sold than bought. This lack of strong buying support has played a pivotal role in stalling any attempts at recovery and highlights the lack of investor confidence in the asset.

The CMF’s persistent negative readings align with broader market sentiment, which remains cautious and hesitant. Even though HBAR has tried to bounce back following the March correction, the lack of investor confidence has limited its ability to break out of its current downtrend. The altcoin has found it challenging to push above the $0.17 resistance, and without fresh capital or positive catalysts, it may struggle to reclaim any meaningful gains in the near future.

At the time of writing, HBAR is trading at approximately $0.16, down 6% over the last 24 hours. Despite some efforts to recover, it is yet to make a decisive break through key resistance levels. Traders are eyeing the $0.19 mark as a critical threshold that needs to be crossed in order to confirm a potential reversal. If this level is reached, it could signal a shift in sentiment and open the door for further upside potential. However, with the current bearish outlook, HBAR may not have the momentum needed to achieve this.

The primary support level for HBAR sits at $0.16. If the price fails to hold at this level, a drop to $0.15 or lower could follow. A fall to $0.15 would negate much of the recent recovery and leave HBAR vulnerable to additional losses. At this point, the outlook for the token appears largely bearish unless a significant shift in sentiment occurs.

For the bears to lose their grip, HBAR would need to overcome the $0.17 resistance and establish it as support. A sustained push beyond $0.19 could turn the tide in favor of the bulls, potentially leading the altcoin back toward the $0.20 level. However, with the current weak investor inflows and overall market hesitation, HBAR will need strong external factors, such as positive news or a shift in broader market sentiment, to break free from its current bearish pattern.

In conclusion, Hedera’s recent formation of a death cross and its struggle with weak investor inflows highlight a challenging road ahead for the altcoin. Unless it can reclaim key resistance levels and shift investor sentiment, HBAR may continue to face downward pressure in the short to medium term. Traders and investors will need to watch closely for signs of recovery or further declines in the coming weeks.