Hedera (HBAR) is under continued selling pressure after confirming its three-month wedge pattern. The recent downturn indicates a decline in investor confidence, making the cryptocurrency reliant on Bitcoin’s recovery.
As BTC shows initial signs of strength, HBAR’s next move may depend on the flagship cryptocurrency maintaining its upward momentum.
Sponsored
Sponsored
Hedera Investors Are Pessimistic
HBAR’s weighted sentiment indicator has hit an all-time low, indicating that traders are increasingly doubtful about HBAR’s short-term potential.
This sentiment dip underscores the cautious mood in the market, particularly as broader volatility makes participants reluctant to re-enter trades.
A decline in sentiment can directly impact capital flows, restricting potential inflows into the network. With persistent selling pressure, Hedera’s market activity risks stagnating unless new optimism emerges.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
From a macro perspective, Hedera’s correlation with Bitcoin stands at 0.92, highlighting a strong relationship between the two assets.
Sponsored
Sponsored
This correlation indicates that HBAR’s performance is heavily tied to Bitcoin’s trajectory. If BTC manages to maintain its current rebound and exceeds $108,000, HBAR could follow with an upward trend.
This connection may be advantageous in the short term, particularly as Bitcoin begins to stabilize. However, if BTC encounters renewed selling, HBAR’s dependence could leave it vulnerable to further losses.
HBAR Price Can Note Recovery
HBAR is currently priced at $0.167, just beneath the key resistance level of $0.172. The altcoin remains within a descending broadening wedge, a pattern that often signals a bullish breakout when market conditions align with investor sentiment.
If Bitcoin continues its upward trend, HBAR might break through $0.172 and $0.180, with a short-term target of $0.188. This increase is pivotal for the altcoin to validate the previously mentioned pattern.
Conversely, if bearish sentiment prevails and investor apathy intensifies, HBAR could drop below $0.163 and possibly reach $0.154. A breach of this support would invalidate the bullish outlook and indicate further downside risk.
