HBAR Price Rebounds But Death Cross Warns of Potential Bull Trap
HBAR stages impressive recovery as technical pattern flashes warning signals
The Technical Setup
Hedera's native token defies gravity with a sharp rebound, climbing from recent lows as traders pile back in. But the celebration might be premature—that classic death cross formation on the charts suggests this could be another classic crypto fakeout.
Market Mechanics at Play
Short-term momentum pushes prices upward while longer-term moving averages tell a different story. The 50-day crossing below the 200-day creates that ominous pattern technical analysts watch like hawks. Retail investors chase the green candles while institutional players quietly position for the potential downturn.
The Psychology of Traps
Bull traps feed on FOMO—the very emotion driving this latest surge. New money floods in, convinced they're catching the bottom, only to discover they're the exit liquidity for smarter money. It's the oldest story in crypto, just with different ticker symbols.
Remember when your traditional finance friends said crypto markets lacked sophistication? They weren't entirely wrong—just early. Now watch professional traders use the same technical analysis they mocked, proving markets eventually force everyone to speak the same language of price action.
HBAR price has formed a death cross pattern
The daily chart shows that HBAR crashed from a high of $0.3052 in July to a low of $0.1015 earlier this month. It then bounced back to the current $0.1800 as most altcoins rebounded.
However, there is a risk that this rebound is part of a dead-cat bounce. For one, the token has remained below the key resistance level at $0.2063, its lowest point in September.
Hedera’s price has remained below the Supertrend indicator, a sign that bears are still in control. It has also formed a death cross pattern as the 50-day and 200-day exponential moving averages have crossed.
Therefore, there is a possibility that Hedera will resume the downtrend. If this happens, the token may drop to the psychological level at $0.1500. The bearish outlook will become invalid once it moves above the resistance at $0.2063.
