Hedera’s HBAR has been facing significant downward pressure in recent trading sessions, struggling to maintain any upside momentum. Despite multiple attempts to break out from its existing trajectory, the altcoin has consistently failed to establish higher price levels. This ongoing downtrend is compounded by a challenging market environment that has thus far hindered HBAR’s recovery efforts, despite brief periods of stabilization close to critical support zones.
Technical analysis indicates a growing bearish sentiment among traders. A recent release of the Squeeze Momentum Indicator last week highlighted an increase in market volatility, but instead of spurring a positive price movement, it led to a notable decrease in HBAR’s value. This shift has further entrenched negative sentiment among short-term traders, as reflected in the deepening histogram of the indicator, which now remains firmly in bearish territory.
As selling pressure persists, the prospects for HBAR’s recovery appear increasingly bleak. Many traders are reluctant to re-enter positions without clearer technical confirmations of an upward trend, especially in light of sustained bearish momentum.
Adding to HBAR’s woes is its strong correlation with Bitcoin, standing at approximately 0.79. This relationship indicates that HBAR’s price actions largely mirror those of Bitcoin, rather than demonstrating independent movement. Bitcoin’s ongoing struggles to regain momentum have had a trickle-down effect on HBAR. In the absence of a solid recovery from Bitcoin, HBAR’s chances of breaking free from its current downtrend remain limited.
At present, HBAR is trading around $0.111, marginally above the significant support level of $0.110. The altcoin experienced a sharp 24.5% drop earlier last week, marking a continuation of its month-long downtrend. Current price movements suggest a phase of cautious stabilization, rather than a definitive reversal.
Looking ahead, HBAR may continue to encounter challenges below the $0.120 mark. If bearish momentum persists, the price could potentially fall toward $0.099, extending losses and further entrenching the prevailing downtrend.
For HBAR to forge a path toward recovery, a significant increase in investor inflows would be essential. Renewed buying interest could enable HBAR to reclaim the $0.120 level and possibly break away from its downward trajectory. A sustained move towards $0.125 would not only invalidate the current bearish outlook but would also reflect a rebuilding of confidence among market participants.
