HBAR Price Reclaims $0.20, But Overbought Conditions Risk a Crash

HBAR has surged 30% in the past week, reaching a multi-week high of $0.200. This rally is a welcome development for investors, marking a significant rebound after a prolonged downtrend. 

However, despite the promising price increase, sustaining this momentum could be challenging due to certain technical factors.

HBAR Death Cross Nears Its End

The exponential moving averages (EMAs) are showing signs of a shift. The 50-day EMA is beginning to trend upward, a positive sign for HBAR.

If the price continues its rise, the 50-day EMA could cross above the 200-day EMA, marking the end of the six-week-long Death Cross. This would be a major bullish signal, potentially leading to a Golden Cross, which could continue to drive HBAR’s price upward.

However, for the 50-day EMA to successfully cross above the 200-day EMA, the price needs to maintain its upward trajectory.

A failure to secure the current price levels could result in a failure to break the Death Cross, ultimately preventing the altcoin from making significant gains.

While HBAR’s price has seen a healthy rise, the Relative Strength Index (RSI) is currently in the overbought zone, sitting above the 70.0 threshold.

Historically, when HBAR’s RSI entered the overbought zone, the cryptocurrency faced a price decline, and the gains were quickly wiped away. This overbought condition raises concerns about a potential price correction, especially given the rapid pace of the recent rise.

If history repeats itself, HBAR’s impressive 30% rally this week could face a significant pullback.

The overbought signal is a warning sign that the price could lose its current momentum, especially if investors start taking profits or market conditions shift unfavorably.

HBAR Price Recovery Is Strong

HBAR is trading at $0.200, up 30% in the past week. This marks the first time in over a month and a half that the altcoin has reclaimed this price as support. The recent rally has brought HBAR closer to the critical $0.205 resistance level.

Despite the rally, HBAR might face difficulties crossing the $0.205 resistance level if the overbought conditions persist.

A price rejection at this level could trigger a pullback, with potential drops back to $0.180 or even $0.154. Such a decline would erase the recent gains and delay further upward movement for the altcoin.

However, if the broader market remains bullish, HBAR could manage to flip the $0.205 resistance into support. This would allow the altcoin to continue rising, potentially reaching $0.220 and beyond, invalidating the bearish scenario.

The ability to hold above key support levels will be crucial in determining whether HBAR can sustain its upward momentum.