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Amid the bearish sentiment in the crypto market, Hedera ($HBAR) has once again experienced a sharp downfall on the daily chart. On March 31, the $HBAR price dropped by over 3.7%, declining its value from $0.089 to $0.85. However, it is showing a sign of recovery.
Hedera ($HBAR) Faces Continued Downward Pressure Amid Bearish Crypto Market Sentiment
The drop in the $HBAR price was seen after the latest dip in the cryptocurrency market, where major cryptocurrencies like Bitcoin lost significant value over the period of a month. On Tuesday, the Bitcoin ($BTC) price dropped to near $66,000; however, it quickly soared above this level. At present, $BTC is trading at around $67,569 with 1.1% on a daily chart.
Similarly, Hedera ($HBAR) is also getting support at around $0.086. The cryptocurrency is currently giving a sign of recovery as it again started a trajectory after falling below $0.083. At the time of writing, the $HBAR price revolves around $0.087 with a market capitalization of $3.77 billion, according to CoinMarketCap. Its daily trading volume is around $101.39.
What is Causing the Fall in Hedera ($HBAR) Price?
The current fall is part of a longer soft period in March, where the price has stayed mostly between $0.085 and $0.10. There are various macroeconomic and technical factors behind the drop in the $HBAR price.
Amid the uncertainty in the global financial market due to the U.S.-Iran war and the global energy crisis, the cryptocurrency market has been stuck in a consolidation zone for so long. When Bitcoin and the stock market face sideways, the majority of altcoins like $HBAR also face a major drop. Earlier today, Bitcoin ($BTC) rebounded after facing extreme selling pressure; however, it failed to maintain momentum.
Hedera has strong enterprise partners, such as McLaren Racing, that just joined the council and big names such as Google, IBM, and Boeing. However, the actual number of transactions and total value locked in the Hedera network has dropped from last year’s highs.
Major technical platforms are showing a bearish outlook and giving a strong sell signal on the daily chart. The majority of moving averages are pointing to sell, while the price is trading well below these important trend lines. It means that the overall direction remains downward.
A “death cross” pattern was created earlier when the 50-day moving average crossed below the 200-day moving average. This is a classic warning sign that the downward trend might stay for a long time. Not just this, $HBAR is also stuck inside a descending channel, which makes lower highs and lower lows for many weeks.
The RSI is revolving around 45 on a 4-hour timeframe, which is neutral to weak but not yet deeply oversold. The MACD is also confirming a bearish momentum. Similarly, Bollinger Bands are confirming the price near the lower band, which suggests that it could see a small short-term bounce, but the bigger trend is expected to be negative.
There is a major support sits around $0.084 to $0.085. If the price breaks below this, it could fall toward $0.082 or much lower. On the other hand, the first resistance is at around $0.090 to $0.095, with stronger resistance at $0.10.