HBAR has faced difficulties in sustaining its upward trajectory after failing to surpass the $0.40 resistance earlier this month. The cryptocurrency's subsequent decline has settled its price around $0.30, placing it back into a well-known trading range.
Given the present uncertainties in investor confidence, HBAR remains susceptible to further declines unless market conditions show improvement.
The Chaikin Money Flow (CMF) indicator highlights weak inflows into HBAR, amplifying investor skepticism. Since its unsuccessful breakout attempt, the CMF remains near the neutral line, indicating minimal new capital being invested. Without a notable increase in buying activity, HBAR may remain consolidated within its existing range.
Majority of HBAR investors appear reluctant to commit additional funds until the cryptocurrency confidently breaks past the $0.40 resistance level. This hesitancy mirrors wider market unease, as traders await a definitive bullish signal. Until inflows increase, HBAR may continue to struggle in generating the momentum necessary for a sustained upward movement.
Recently, HBAR’s correlation with Bitcoin has dropped to 0.64, showing a weakened relationship between the two digital assets. If this correlation continues to decline, it could signal bearish implications for HBAR, especially given Bitcoin's progress towards surpassing the $105,000 resistance. Should HBAR not align with Bitcoin's upward trends, it may trail behind broader market gains.
Low correlation with Bitcoin could isolate HBAR from wider market rallies, making its performance more reliant on individual investor sentiment. With Bitcoin demonstrating significant bullish potential, HBAR's divergence may prevent it from benefiting from the overarching crypto market's upward movement.
HBAR has reverted to the consolidation range it experienced between December 2024 and early this year, now fluctuating between $0.33 and $0.25 after failing to maintain the $0.33 support. This shift has reintroduced bearish pressure, increasing risks of further price decreases.
Continued consolidation could see HBAR edge closer to $0.25. Losing this key support level might trigger panic selling, potentially pushing the cryptocurrency down towards $0.20. The lack of robust inflows further undermines prospects for an immediate recovery.
Nevertheless, if HBAR successfully re-establishes $0.33 as support, it could regain bullish momentum. A successful breach of the $0.40 resistance would likely rebut the current bearish outlook, possibly encouraging investors to re-enter the market and provide HBAR holders with profit opportunities.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.