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The price of Hedera registered a sharp decline in the last sessions, witnessing a 15% drop that pushed HBAR to lower levels. Although this move seems bearish at first glance, technical indicators and blockchain data suggest a different story.
Investors’ behaviors indicate hoarding rather than panic selling. This shift positions the decline as a potential opportunity rather than a collapse.
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Following Hedera of Bitcoin was the problem
HBAR’s recent weakness closely mimics Bitcoin’s price action. This altcoin shows a strong correlation with BTC at 0.98%. This high correlation makes HBAR highly sensitive to broader market movements. When the price of Bitcoin fell below $80,000, HBAR followed almost immediately.
This correlation explains the sudden pullback below the $0.100 level. This move was less related to Hedera’s fundamentals and more the result of general market pressures.
Closely correlated assets typically experience exaggerated movements during periods of steep Bitcoin decline. This dynamic emerges clearly During the recent HBAR landing.
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HBAR holders double their investments
Despite the low price, HBAR holders pay Against the negative outlook. The Chaiken Liquidity Flow Index shows a notable divergence, with the CMF forming lower highs over the past four days, while the HBAR price is recording lower lows. This pattern indicates that financial flows are increasing despite the decrease in price.
Ascending divergences often precede reversals and indicate that investors are accumulating while the price remains low.
Although HBAR has not yet reflected this demand, financial flows are accumulating below the surface. This gap increases the likelihood of recovery once the selling pressure subsides.
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The RSI also supports the bullish setup. HBAR’s RSI has fallen below the 30.0 threshold, placing the asset firmly in the oversold zone. Oversold conditions often indicate selling exhaustion rather than continued weakness.
Historical data shows that business activity at these levels is seeing a slowdown in sales orders. Low prices attract buyers looking for value income opportunities. For HBAR, this environment increases the probability of stabilization and recovery, especially when coupled with increasing flows.
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The price of HBAR is waiting for a crash
HBAR is trading near $0.091 at the time of writing. The altcoin has been moving in an expanding wedge pattern for about a month. This pattern was formed after a failed discovery attempt in mid-January. These patterns often end in strong directional moves.
A confirmed break out of this pattern indicates a potential upside of 43% towards $0.146. This target reflects a broader macro-term bullish scenario. In the near term, HBAR should first claim the $0.103 level. A move towards $0.114 would confirm the first momentum of the breakout and support bullish signals.
Continue to warn of downside risks if conditions deteriorate further. Bitcoin’s continued weakness may outweigh the positive indicators. If HBAR loses the support at $0.091, the price could fall towards $0.084. Such a step will nullify the bullish scenario and delay any recovery attempts.
