Hedera (HBAR) continues to face downward pressure after confirming its three-month wedge pattern. The recent drop reflects declining investor confidence, making the cryptocurrency dependent on Bitcoin’s recovery.
With BTC showing early signs of strength, HBAR’s next move could depend on the cryptocurrency king’s ability to maintain bullish momentum.
HBAR’s weighted sentiment indicator has fallen to an all-time low, suggesting traders are increasingly skeptical about HBAR’s near-term potential.
This lack of conviction highlights the cautious sentiment in the market, particularly as broader volatility keeps participants reluctant to re-take positions.
Declining sentiment could directly affect capital flows, limiting potential entries into the network. As selling pressure persists, Hedera market activity risks stagnating unless renewed optimism emerges.
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From a macro perspective, Hedera’s correlation with Bitcoin is 0.92, marking a strong relationship between the two assets.
This correlation suggests that HBAR’s performance is largely tied to Bitcoin’s direction. If BTC maintains its current bounce and breaks above $108,000, HBAR could see similar bullish momentum.
This connection could prove beneficial in the short term, especially as Bitcoin begins to stabilize. However, the downside remains if BTC faces fresh selling. In such a case, reliance on HBAR could expose you to further downfalls.
HBAR is trading at $0.167, sitting just below the key resistance at $0.172. The altcoin remains within a falling and widening wedge. This is a pattern that often precedes a bullish breakout once market conditions align with investor sentiment.
If Bitcoin continues to strengthen, HBAR could surpass $0.172 and $0.180, with a target of $0.188 in the near term. This rise is crucial for the altcoin to finally validate the aforementioned pattern.
On the contrary, if the bearish sentiment persists and investor apathy deepens, HBAR could fall as low as $0.163 and reach $0.154. Losing this support would invalidate the bullish outlook and signal greater downside risk.
Read original story HBAR Price Hinges on Bitcoin for Bailout as Holders Pull Back by Aaryamann Shrivastava on beincrypto.com