Hedera is under new pressure after HBAR fell due to the overall market downturn. The recent price decline reflects bearish cues due to macro uncertainty and Bitcoin weakness.
While Hedera’s long-term outlook remains positive, any near-term recovery attempts may suffer as market headwinds continue to weigh on sentiment.
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HBAR has another target
Price trends remain macro-bullish, with HBAR trading within a well-defined descending channel. A rejection from the channel top near $0.1290 confirmed the sellers’ advantage.
The recent decline towards $0.0893 indicates demand weakness and suggests continued risks as momentum and structure remain tilted to the downside.
Immediate support lies at $0.0786, which previously triggered a brief pullback. This pattern predicts a bullish outcome, so a breakout from it could trigger a 31% rally. This could push HBAR towards $0.1252, indicating a short-term rebound and leading to further recovery.
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HBAR traders brace for new lows
But derivatives data provides a more nuanced picture of traders’ expectations. HBAR futures funding rates have remained in negative territory for the past 48 hours, despite attempts to stabilize prices. Negative funding indicates that short positions are paying out longs, reflecting further downside bias.
This positioning suggests that traders are expecting further weakness and are looking to profit from it. Currently, short contracts are dominating long contracts, leading to skepticism about an immediate recovery.
While excessive short-term exposure could prompt a sharp squeeze, it also highlights widespread caution among speculators.
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The high correlation between HBAR and Bitcoin further increases the risk. The correlation coefficient between HBAR and BTC is currently around 0.96. Such strong relationships typically benefit altcoins during Bitcoin rallies, as capital flows across the market en masse.
However, in the current environment, this correlation acts as a constraint. Bitcoin is struggling to regain momentum, and HBAR’s recovery could be delayed if BTC continues to decline. Until Bitcoin stabilizes or reverses upward, HBAR is likely to reflect broader market pressures rather than a meaningful separation.
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HBAR Price Support Level Next
HBAR is trading around $0.0895 at the time of writing, just below the $0.0907 resistance. This level has capped recent attempts to move higher. A successful reversal of support at $0.0907 would be the first signal of structural improvement, paving the way to the $0.1029 target.
Considering the prevailing circumstances, there is a high probability of a breakout failure in the short term. If HBAR is unable to regain $0.0907, the price may consolidate above the support at $0.0832. Below this level, HBAR could fall further towards $0.0710, extending the downtrend.
A more constructive outcome would depend on getting back $0.1029. Achieving this level would allow HBAR to recoup a significant portion of its recent losses. Such a move would invalidate bearish theories, and if broader market conditions around Bitcoin also improve, it would signal that buyers are regaining control.
