HBAR price rebounds but death cross points to a bull trap

HBAR price rose for three consecutive days, reaching its highest point since Oct. 16, as the crypto market rebounded.

Hedera (HBAR) rose to $0.1800, up 76% from its lowest level this year. This rebound has brought its market cap to over $7.6 billion.

HBAR price rally has mirrored that of Bitcoin (BTC) and other altcoins, including top layer-1 tokens lke Ethereum, Solana, Cardano, and Sui. 

The rally is driven by rising hope that the Federal Reserve will continue cutting interest rates at its meeting next week. Such a move, coupled with a pledge to continue cutting rates, would help boost risky assets like cryptocurrencies and stocks.

HBAR’s price is also jumping as investors wait for the upcoming meeting between U.S. and Chinese officials. These officials will likely narrow their differences ahead of next week’s Donald Trump and Xi Jinping meeting.

Still, Hedera Hashgraph’s ecosystem continues to face some major headwinds. It has a fairly small market share in key industries like decentralized finance and stablecoins despite its partnerships with leading blue-chip companies. 

Its DeFi ecosystem is made up of 23 protocols with a total value locked of $183 million. This TVL has dropped by more than 23% in the last 30 days. Its stablecoin market cap has dropped to $103 million, a tiny amount in an industry with over $300 billion in assets.

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.