Hbar, a native token for Hedera, has been struggling to maintain momentum after recent rebounds failed to generate meaningful profits.
Despite a temporary attempt to break out of the downward pattern, it raised concerns that the correlation between weakening market conditions and decline with Bitcoin could not result in a recovery.
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Hedera is pulling away from Bitcoin
HBAR’s correlation with Bitcoin fell to 0.48, the lowest point in two months. This weakened connection shows that Altcoin is beginning to move independently of Bitcoin price action.
Independence can sometimes lead to unique gatherings, but often small assets become more vulnerable during periods of volatile.
This difference could undermine HBAR’s upcoming outlook, particularly as Bitcoin is close to an all-time high, close to $122,000.
Historically, altcoins have benefited from Bitcoin-led gatherings, but decoupling at this critical stage could mean that HBAR will miss out on the wider market.
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Technically, the relative strength index (RSI) is struggling to exceed the neutral 50.0 mark.
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A sustained rise above this level indicates building strength, but HBAR has not been able to establish it as support up until now. This indicates prolonged uncertainty among traders.
If the RSI drops further, it pushes HBAR into bearish territory and limits potential recovery attempts. The lack of strong buying momentum suggests investors are reluctant to re-enter the market.
HBAR prices may be retracted
HBAR is trading at $0.220 at the time of writing and hovering just above $0.219 support. The token has recently tried to break out of the declining wedge pattern.
But it has struggled to maintain its upward momentum, leaving the breakout uncertain.
If the bear pressure gets stronger, a breakout failure could result in a reduction in HBAR to $0.206, testing low trendlines as support. Such a decline will confirm the continuation of the current downtrend and extend the integration phase of AltCoin.
However, if bullish feelings return, the HBAR could bounce off the $0.219 level and gather towards $0.230.
Passing this resistance could result in a successful breakout, pushing the price to another $0.242, potentially negating the bearish outlook.
