In the past week, Hedera (HBAR) has experienced a significant decline, with its price plunging to $0.130, corresponding to a drop of over 18%. Notably, HBAR has broken through a crucial support level, which had served as a “shield” protecting investors’ profits for more than a month.
Hedera “follows in Bitcoin’s footsteps”
Currently, the correlation index between Hedera and Bitcoin has reached 0.97 – one of the highest values in recent months. This near-perfect correlation indicates that HBAR is closely mirroring Bitcoin’s movements.
This is particularly concerning as Bitcoin has faced strong selling pressure, as seen over the past week. When BTC dropped to $84,408, HBAR moved almost in tandem. This high correlation has overshadowed Hedera’s ability to move independently, making Bitcoin’s downtrend the main factor driving HBAR’s steep decline.
MHBAR’s correlation with Bitcoin | Source: TradingViewMacro momentum indicators also reinforce the negative trend. The Chaikin Money Flow index is currently at its lowest point in eight months, reflecting a strong outflow of capital from HBAR. This indicator measures buying and selling pressure, and the deep negative reading shows investors are pulling out their funds at an increasing rate.
This continual capital outflow further increases pressure on an already weak price trend. As liquidity leaves the asset, selling forces intensify and the potential for recovery becomes fragile.
ChHBAR’s CMF index | Source: TradingViewWithout the return of new capital inflows, HBAR will continue to struggle to regain upward momentum.
Recovery outlook for HBAR
After losing the crucial support at $0.162 – which had held for over a month, HBAR has dropped 18% this week. Losing this anchor exposes it to the risk of further declines and increased volatility as market sentiment turns negative.
With macro factors showing no signs of improvement, HBAR may continue to correct toward the $0.120 area from its current price of $0.129. If it breaks below $0.120, selling pressure could push the price down to the $0.110 zone.
PhHBAR price analysis | Source: TradingViewOn the other hand, if buying pressure returns, HBAR could recover. Surpassing the $0.133 resistance will be the first signal of a stabilizing trend. If it continues to break through the $0.145 mark, HBAR could open up the opportunity to reach $0.154 and higher, thereby erasing the negative outlook and restoring investor confidence.
Ong Giao
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