Hedera (HBAR) is facing mounting pressure as its price dropped more than 10% during the latest market downturn.
The altcoin’s decline mirrors the broader crypto weakness, extending a downtrend that has persisted for weeks. Market conditions suggest HBAR could remain under strain unless investor momentum turns supportive.
Hedera Holders Show Belief
The correlation between HBAR and Bitcoin currently sits at 0.94, signaling a near-perfect alignment with BTC’s price action. Such a high correlation often amplifies volatility, as any major move in Bitcoin tends to cascade into Hedera’s trajectory.
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This tight relationship comes at a challenging time. Bitcoin dropped to $111,600 in the past 24 hours, pulling the crypto market lower. With the leading cryptocurrency struggling to stabilize, HBAR risks additional declines if BTC’s weakness persists. Investors may need to brace for further downside.
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HBAR Correlation To Bitcoin. Source: TradingView
Despite the bearish backdrop, the Chaikin Money Flow (CMF) indicator shows an unexpected spike in inflows. This reflects renewed investor interest in Hedera, even as prices hover near recent lows. Strong inflows can act as a cushion, slowing losses and offering a chance for stabilization.
Sustained demand is critical for any recovery attempt. If buyers maintain support, HBAR could find the foundation it needs to resist Bitcoin’s drag. However, any reduction in inflows would weaken this safety net and deepen the bearish outlook for the altcoin.
HBAR CMF. Source: TradingView
HBAR Price Faces Correction
At the time of writing, HBAR trades at $0.222, holding narrowly above its $0.219 support level. The sell-off pushed the token to a fresh two-month low before a minor rebound softened the decline.
While the price has managed a modest recovery, bearish forces remain dominant. Under the weight of its downtrend, HBAR is likely to trade sideways in the near term, consolidating between $0.230 and $0.213 as uncertainty lingers.
HBAR Price Analysis. Source: TradingView
Should investor inflows strengthen further, the outlook could shift. A bounce from current levels would allow HBAR to flip $0.230 into support. Such momentum could propel the token toward $0.242, breaking its downtrend and invalidating the bearish thesis.
