Hedera HBAR has continued to trade under pressure as a prolonged decline limits the opportunities for upward movement. Several breakout attempts have failed, preventing the altcoin from reaching higher levels.
The broader market situation has increased the pressure and hindered HBAR from gaining traction, even though the price has temporarily stabilized at key support zones.
Hedera is facing a decline
Technical indicators show that selling pressure is increasing. The Squeeze Momentum Indicator came earlier last week and led to increased volatility. Instead of a rise, the indicator resulted in a sharp price decline and increased negative sentiment among short-term traders.
The indicator's histogram becomes deeper in the negative area. It shows that sellers still dominate. Increased downward pressure reduces the chances of recovery for the HBAR price, as traders hesitate to enter again when technical signals are weak.
HBAR's macro situation is closely tied to Bitcoin's development. Right now, the altcoin has a strong correlation of 0.79 with BTC. This means that HBAR largely follows the Bitcoin price and does not develop independently.
Since Bitcoin struggles to recover, it also weighs on HBAR. When BTC lacks strength, associated assets face similar problems. Therefore, HBAR cannot break its downward trend without a stronger market and a clear rise for Bitcoin.
HBAR is trading near 0.111 USD right now and is slightly above the support at 0.110 USD. The token fell 24.5% earlier in the week after failing to break its month-long decline. Now, trading rather suggests cautious stabilization than a turnaround.
Under these circumstances, HBAR may continue to struggle below the level of 0.120 USD. An increasingly strong selling pressure could pull the price down towards 0.099 USD. If the price lands there, losses increase and confirm the downward trend from the recent trading days.
A positive scenario requires investors to start buying again. If interest in purchases increases, HBAR could reclaim the level of 0.120 USD and break its downward trend. A stable lift towards 0.125 USD would contradict the negative scenario and indicate greater confidence among market participants.
