Hedera’s native token, HBAR, is facing challenges in maintaining its momentum after a recent rebound that failed to yield substantial gains.
Although it briefly attempted to escape its downward trend, declining market conditions and its weakening correlation with Bitcoin have raised doubts about the sustainability of the recovery.
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Hedera Is Diverging From Bitcoin
HBAR’s correlation with Bitcoin has fallen to 0.48, its lowest in two months. This decreasing relationship indicates that the altcoin is starting to operate independently of Bitcoin’s price movements.
While such independence can sometimes ignite unique rallies, it often leaves smaller assets more susceptible during periods of volatility.
This separation could negatively impact HBAR’s short-term prospects, especially as Bitcoin trades around $122,000 and approaches its all-time high.
Historically, altcoins have profited from rallies led by Bitcoin, but a decoupling at this pivotal point might result in HBAR missing out on broader market gains.
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From a technical perspective, the Relative Strength Index (RSI) is having difficulty remaining above the neutral 50.0 threshold.
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A consistent rise above this level would signify growing bullish momentum, but HBAR has so far been unable to solidify it as support. This indicates ongoing uncertainty among traders.
If the RSI dips further, it may push HBAR into bearish territory and hinder any possible recovery attempts. The lack of strong buying enthusiasm suggests that investors are reluctant to re-enter the market.
HBAR Price May Recede
Currently, HBAR is trading at $0.220, just above the $0.219 support level. The token recently attempted to break out of a descending wedge pattern.
However, it has faced challenges in maintaining its upward momentum, leaving the breakout in question.
If bearish pressure heightens, the unsuccessful breakout could cause HBAR to drop toward $0.206, testing the lower trend line as support. This decline would confirm a continuation of the prevailing downtrend and prolong the consolidation phase for the altcoin.
However, if bullish sentiment resurfaces, HBAR could rebound from the $0.219 level and move toward $0.230.
A breakthrough past this resistance would confirm a successful breakout, potentially pushing the price higher to $0.242 and invalidating the bearish perspective.
