Hedera (HBAR) has found itself on a downward spiral, as the token recently slipped towards the $0.10 mark due to persistent selling pressure and a broader slump in the cryptocurrency market. This decline is particularly notable given that it follows the announcement of a partnership with the McLaren F1 Team.
On Friday, HBAR’s price fell alongside many of its cryptocurrency counterparts, reaching intraday lows near $0.10. After a sharp decline on January 19, HBAR had seen a slight rebound to around $0.115. However, the prevailing sell-off pressure across risk assets has dampened bullish sentiment, suggesting that the recent uptick may have been little more than a temporary reprieve from deeper issues within the market. This negative sentiment is widespread across the altcoin ecosystem, particularly as Bitcoin struggles to stay above the $90,000 threshold, dipping as low as $87,700 before stabilizing around $89,230.
Despite the significant partnership with McLaren, which was announced as a multi-year agreement designating Hedera as an Official Partner of the McLaren F1 Team, the cryptocurrency has not managed to capitalize on this high-profile collaboration. Several crypto companies, such as Coinbase and Crypto.com, have previously engaged in similar sports sponsorships, highlighting an industry trend that Hedera hoped to tap into for growth. Charles Adkins, CEO of HBAR, Inc., expressed optimism about the partnership, stating, “Working with one of the world’s most recognized sports brands is a big step for the Hedera ecosystem. It gives us a chance to show what Web3 can look like when it’s built on a network people can trust, and when it’s tied to experiences fans actually want.”
Technical analysis of HBAR paints a concerning picture. The price structure shows pronounced bearish tendencies, remaining well below key moving averages. The altcoin has been in a prolonged downtrend since reaching highs of $0.35 last January. Technical indicators suggest that further declines may be on the horizon, particularly after HBAR breached the $0.12 support level earlier this month and now flounders near $0.10. Momentum oscillators, including the RSI, are trending lower, indicating weakness in buyer momentum.
If buyers fail to reclaim the $0.11 level, losses could accelerate, potentially pushing HBAR down to October’s lows, approximately $0.0976. Currently, Hedera’s market capitalization sits at around $4.65 billion, reflecting a substantial 65% decrease from its peaks in July 2025. This decline has also been accompanied by a falling total value locked at $61.5 million and a 16% reduction in stablecoin supply over the past week.
The sentiment among futures traders appears to be leaning bearish as they ramp up short positions, reflecting an expectation of continued market pressure amidst a lack of inflows from exchange-traded funds (ETFs). Analysts suggest that while a bounce could potentially lead the price toward the $0.16 range, current metrics lean towards further consolidation or a deeper correction unless Bitcoin manages to stabilize. Presently, Bitcoin seems burdened, with many investors shifting their interest toward gold as a safe haven in light of the turbulent market conditions.
