Hedera (HBAR) continues to face downward pressure after confirming a three-month wedge pattern. The recent decline reflects a decline in investor confidence, and the cryptocurrency is dependent on Bitcoin’s recovery.
With BTC showing early signs of strength, HBAR’s next move may depend on whether the crypto king can maintain its upward momentum.
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Hedera investors are pessimistic
HBAR’s weighted sentiment indicator has fallen to an all-time low, suggesting that traders are becoming increasingly skeptical about HBAR’s near-term potential.
This lack of confidence highlights the cautious mood in the market, especially as increased volatility has made participants hesitant to re-enter positions.
A decline in sentiment could have a direct impact on capital flows, limiting potential inflows into the network. As selling pressure continues, there is a risk that Hedera’s market activity will stagnate unless optimism emerges again.
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From a macro perspective, the correlation between Hedera and Bitcoin is 0.92, indicating a strong relationship between the two assets.
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This correlation suggests that HBAR’s performance is highly related to Bitcoin’s direction. If BTC sustains its current rebound and climbs above $108,000, HBAR could also experience a similar rise.
This connection could prove beneficial in the short term, especially as Bitcoin begins to stabilize. However, there is still a downside if BTC faces another selloff. In such cases, reliance on HBAR could expose HBAR to further declines.
HBAR price focuses on recovery
HBAR is trading at $0.167, just below the major resistance level at $0.172. The altcoin remains within a descending expanding wedge. This is a common pattern that precedes a bullish breakout when market conditions match investor sentiment.
If Bitcoin continues to rise, HBAR could break above $0.172 and $0.180, with a near-term target of $0.188. This rally is crucial for the altcoin to finally validate the above pattern.
Conversely, if bearish sentiment persists and investor apathy deepens, HBAR could fall as low as $0.163 and reach $0.154. A loss of this support would invalidate the bullish outlook and signal further downside risks.
