HBAR Price Aligns with Bitcoin: Future Implications

Hedera's HBAR remains under bearish pressure, with attempts to break higher levels consistently thwarted. The broader crypto market environment contributes to this challenge, hindering HBAR's ability to gain momentum despite stabilization near crucial support levels.

Bearish Indicators for Hedera

Technical indicators highlight increasing bearish momentum. The Squeeze Momentum Indicator, released last week, led to heightened volatility and a sharp price decline, reinforcing negative sentiment among short-term traders. The deepening histogram in bearish territory suggests persistent selling pressure, reducing the likelihood of HBAR price recovery as traders hesitate without strong technical confirmation.

HBAR's macro outlook is significantly influenced by Bitcoin's performance, showing a correlation of 0.79 with BTC. This correlation indicates that HBAR's price movements largely mirror Bitcoin's, rather than being independent. Consequently, Bitcoin's struggle to recover impacts HBAR, as correlated assets often face similar challenges. Without a sustained rebound in Bitcoin, HBAR's ability to break its downtrend remains limited by the broader market weakness.

Potential Decline for HBAR Price

Currently trading near $0.111, HBAR holds slightly above the $0.110 support level. The token experienced a 24.5% drop last week, failing to escape its downtrend. Present price action suggests cautious stabilization rather than a reversal. Given current conditions, HBAR may continue to struggle below $0.120, with persistent bearish momentum potentially dragging the price towards $0.099, extending losses and reinforcing the downtrend.

A bullish scenario depends on renewed investor interest, which could help HBAR reclaim $0.120 and break free from its downward pattern. A sustained push towards $0.125 would invalidate the bearish outlook and signal improved confidence among market participants.