Hedera’s HBAR remains under pressure due to a persistent downward price trend, preventing the price from rising. Multiple breakout attempts have failed, causing the altcoin to struggle at higher levels.
The broader market environment adds extra pressure and prevents HBAR from gaining traction despite a brief stabilization at key support zones.
Hedera is under bearishness
Technical indicators point to growing bearish momentum. The Squeeze Momentum Indicator was activated at the beginning of last week, leading to increased volatility. Instead of a rise, this resulted in a sharp price decline, reinforcing the negative sentiment among short-term traders.
The histogram of the indicator continues to sink into bearish territory. This pattern indicates that selling pressure continues to dominate. The strengthening downward momentum reduces the chances of HBAR price recovery, as traders hesitate to reopen positions under weak technical signals.
The macro view of HBAR is strongly linked to the performance of Bitcoin. The altcoin currently has a high correlation of 0.79 with BTC. This means that HBAR largely follows the price movements of Bitcoin, rather than moving independently.
As Bitcoin struggles to recover, this heavily weighs on HBAR. If BTC lacks momentum, various connected cryptos often face the same limitations. Unless Bitcoin rebounds strongly, HBAR's chance of breaking out of its downward trend remains limited due to weakness in the broader market.
At the time of writing, the HBAR price is around $0.111, just above the $0.110 support. The token fell 24.5% last week after a failed attempt to break out of the months-long downward trend. The current price movement mainly indicates cautious stabilization and not a clear reversal.
Given the situation, HBAR may continue to struggle to rise above the $0.120 level. Persistent bearish momentum could push the price towards $0.099. If this happens, losses will be further exacerbated and the decline of the past trading days will be confirmed.
A bullish scenario is only possible if there is more inflow of investors. Increased buying interest could help HBAR reclaim $0.120 and break the downward trend. A sustained increase towards $0.125 would invalidate the bearish scenario and instill more confidence among market participants.
