HBAR Price Prediction: May 2025 Outlook
Hedera (HBAR) Price Prediction: May 2025
Hedera (HBAR) begins May in a precarious yet potentially volatile state. Futures trading activity has cooled, and HBAR's price movements are strongly linked to Bitcoin's performance. Lower HBAR futures volume suggests reduced speculative interest compared to earlier this year.
Low HBAR Futures Volume Signals Cooling Speculation
Current HBAR futures volume stands at $118 million, up from a recent low of $76 million on April 19th – its lowest point in three months. This follows a significant decline from much higher levels earlier in the year. Open interest, peaking at $1.3 billion on March 1st, has not exceeded $300 million since April 12th, indicating a substantial drop in speculative activity.
Source: Glassnode
Hedera Futures are derivative contracts enabling traders to speculate on HBAR's future price. Reduced volume and open interest suggest HBAR's recent price action may be driven more by spot market demand than leveraged speculation.
Bitcoin Correlation: A Key Driver for HBAR's Next Move
HBAR exhibits a strong correlation with Bitcoin (BTC), often amplifying BTC's price swings. BTC rallies typically lead to even sharper HBAR gains, while corrections tend to impact HBAR more severely. This makes HBAR a higher-beta asset, sensitive to overall market sentiment.
Source: Messari
With Bitcoin up 13% over the past 30 days and nearing $100,000, further BTC gains could significantly boost HBAR. On-chain data suggests recovering BTC demand, and institutional sentiment is showing signs of improvement. A BTC breakout above $100,000 could trigger capital inflows into HBAR.
Key Price Levels to Watch
HBAR faces a critical juncture. A bullish breakout could propel HBAR up to $0.40 (a 123% increase), requiring it to surpass resistance levels at $0.20, $0.258, $0.32, and $0.37. Conversely, a death cross (short-term moving average crossing below the long-term average) could trigger a correction.
Source: TradingView
A death cross could initially push HBAR towards support at $0.16. Failure to hold this level might lead to further declines, potentially to $0.124 or even $0.0053 in a more severe downturn.
Disclaimer: This analysis is for informational purposes only and not financial advice. Conduct thorough research and consult a professional before making investment decisions.