Selling pressure on Hedera's HBAR continues, and the ongoing downward trend limits upward moves. Many breakout attempts have failed; this prevents the altcoin from testing higher levels.
The broad market outlook is also increasing the pressure on HBAR. Despite a brief stabilization at critical support areas, HBAR is failing to capture investor interest.
Hedera Facing Downward Pressure
Technical indicators show that the downward trend is accelerating. The Squeeze Momentum Indicator activated at the beginning of last week, increasing volatility. Contrary to the expected upward movement, this development resulted in a sudden price drop and reinforced negative investor sentiment among short-term traders.
The histogram of the indicator continues to deepen in the decline area. This table shows that the selling pressure is significantly strong. The strengthening of the downward momentum reduces the likelihood of a recovery in the HBAR price because traders are approaching re-entering positions with caution in a weak technical confirmation environment.
The macro view of HBAR is highly dependent on Bitcoin. The altcoin currently showcases a strong 79% correlation with BTC. This relationship reveals that HBAR closely follows the fluctuations in Bitcoin's price rather than exhibiting its own independent price movements.
Bitcoin's struggle to recover is also putting serious pressure on HBAR. When BTC loses momentum, assets that move very closely with it face similar constraints. As long as Bitcoin does not achieve a sustained rise, the likelihood of HBAR breaking its downward trend seems to remain weak.
While this text is being prepared, HBAR is trading at $0.111 and holding just above the $0.110 support. The token experienced a 24.5% loss when it couldn't surpass a downward trend that had been ongoing for more than a month at the beginning of last week. The current price movements indicate a cautious balancing rather than a strong reversal.
Considering the current conditions in the market, it is likely that HBAR will continue to struggle below the $0.120 level. The continuation of the downward trend could pull the price down to $0.099. Retracing to this area would exacerbate losses and signify the continuation of the prevailing downward trend in short-term trading.
An upward alternative may be possible if investor inflows regain momentum. Rising buying appetite could help HBAR reclaim the $0.120 level and disrupt the current downward structure. A sustained attack at $0.125 would invalidate the bearish scenario and serve as a sign of increased confidence among market participants.
