Hedera’s native cryptocurrency, HBAR, has come under intense bearish pressure in recent days, with more than $10 million in spot net outflows recorded over the past three days. This outflow, coupled with the emergence of a “death cross” on HBAR’s daily chart, points to a potential further decline in price and signals weakening demand from investors.

Spot Net Outflows Indicate Waning Investor Confidence

In the past three days, on-chain data has shown that HBAR has experienced approximately $11.21 million in spot net outflows, underscoring the growing bearish sentiment surrounding the altcoin. Spot outflows occur when holders sell their assets or move funds out of the market, signaling a lack of confidence and weakening demand. As investors exit their positions, it places downward pressure on the price of the asset.

These outflows represent a shift in sentiment as traders grow increasingly uncertain about the token’s future price performance. Spot outflows are a typical sign of market fatigue, and in this case, they suggest that investors are looking for safer alternatives or are waiting for further clarity before re-entering the market.

Death Cross: A Strong Bearish Signal

Adding to HBAR’s woes, the appearance of a “death cross” on the daily chart has further soured market sentiment. A death cross occurs when an asset’s short-term 50-day moving average crosses below its long-term 200-day moving average. This bearish crossover is seen as a major signal of a trend reversal from bullish to bearish, suggesting that further downside is likely.

The death cross on HBAR’s daily chart emerged during Tuesday’s trading session, marking the first occurrence of this pattern since November 2024. This technical signal confirms that the altcoin is in a sustained downtrend and may struggle to regain upward momentum without significant changes in market dynamics. Traders often interpret the death cross as a reason to exit long positions and may begin shorting the asset, which adds further selling pressure.

RSI Confirms Weak Demand for HBAR

HBAR’s Relative Strength Index (RSI) is also reinforcing the bearish outlook. The RSI, a momentum indicator that helps measure overbought and oversold conditions, is currently sitting at 42.22 and continues to drop. Typically, an RSI value below 30 signals that an asset is oversold and may be due for a rebound. However, at 42.22, HBAR’s RSI reflects reduced buying interest and confirms that demand is weak.

With the RSI continuing to drop, it becomes evident that HBAR is struggling to find significant support from buyers, which increases the likelihood of further price declines. This bearish momentum could drive the token’s price even lower, with some analysts predicting that it may fall to $0.11, a level last seen in November 2024.

What’s Next for HBAR?

As HBAR continues to face a bearish shift, investors and market participants will be watching closely to see whether the bulls can regain control. The ongoing spot outflows, combined with the technical death cross and weak RSI, suggest that the altcoin is likely to face further downside pressure in the short term.

If the bearish trend persists, HBAR could potentially drop to its support levels around $0.11. However, if buying pressure picks up and the market sentiment shifts in favor of the bulls, the price could attempt to climb back toward the $0.17 level, where it has faced resistance in the past.

For now, the outlook for HBAR remains uncertain, and much depends on whether the token can recover from its current slump or if the bearish indicators will continue to dominate its price action. Investors will need to stay vigilant and watch for any signs of a reversal or further declines.