Hedera has suffered a sharp decline over the past week, with its price falling by more than 18% to $0.130.
This decline is significant as HBAR has fallen below a key support level that has protected investor interests for over a month.
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Hedera chases the king
The correlation between Hedera and Bitcoin is currently 0.97, one of the highest in recent months. This near-perfect correlation shows that HBAR is highly reflective of Bitcoin price fluctuations.
Such strong alignments are especially problematic during periods when BTC is facing significant pressure, as we saw last week.
While Bitcoin has fallen to $84,408, HBAR has also been roughly in step with it. The high correlation erodes Hedera’s ability to move independently, making BTC’s decline one of the main factors behind the altcoin’s recent losses.
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Macro momentum indicators reinforce the bearish picture. Chaikin money flows are near eight-month lows, suggesting significant capital outflows from HBAR.
CMF measures buying and selling pressure, and highly negative readings indicate investors are withdrawing funds at an accelerated pace.
These sustained outflows are adding pressure to already declining price trends. As assets become illiquid, selling intensifies and collection efforts weaken.
Unless inflows return, HBAR may continue to face difficulty regaining upward momentum.
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HBAR price may rebound
HBAR fell 18% this week after falling below $0.162, a key support level that has been holding steady for over a month.
Losing that support caused the altcoin to fall further, increasing volatility as bearish sentiment grew.
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Given that the macro environment has not improved, HBAR could fall from its current price of $0.129 to $0.120.
A decline below $0.120 could trigger additional losses and push the price towards $0.110 as selling pressure increases.
If bullish momentum returns, HBAR could try to recover. A break above $0.133 will be the first step towards stabilizing the trend.
A breakout of $0.145 could pave the way for prices above $0.154, invalidating the bearish outlook and restoring investor confidence.
