Hedera (HBAR) has been making a modest recovery recently, although it is still facing challenges from the overall market sentiment.
Despite its efforts to break through a crucial price barrier, HBAR is struggling due to prevailing negative sentiments, especially in the Futures market. The market environment remains tough, casting uncertainty over the future of HBAR.
Traders in the Hedera space are feeling uncertain about the way forward for HBAR. Currently, HBAR is showing an inverse correlation of -0.03 with Bitcoin. This indicates that while Bitcoin might be on the path to recovery, HBAR may not necessarily follow suit and could move in the opposite direction.
As Bitcoin shows signs of potential growth, HBAR might experience further drops, particularly in its daily performance. The correlation between the two cryptocurrencies reveals that HBAR's price movements may not align with those of Bitcoin, making it susceptible to additional downward pressure in case of market volatility.
Not only is HBAR correlated with Bitcoin but its macro momentum is also affected by the negative funding rate. With the funding rate fluctuating and residing in negative territory, traders are inclined towards short contracts, anticipating further price declines. This prevailing pessimism, coupled with the absence of a strong recovery in HBAR, indicates a challenging road ahead for the altcoin.
At the time of writing, HBAR is trading at $0.246, struggling to break past the $0.250 resistance level. Although it has found support at $0.222, breaking through the resistance could be a formidable obstacle impeding HBAR's progress.
Considering the current market scenario, HBAR is likely to consolidate within the range of $0.222 and $0.250, similar to its past patterns. Any potential breakout might be delayed due to this consolidation, with the broader bearish sentiment restricting HBAR's upward momentum.
However, if HBAR successfully surpasses the $0.250 resistance level and turns $0.267 into a support, it could signify a shift towards a bullish trend. Such a breakthrough could propel HBAR to $0.314, challenging the prevailing bearish outlook and setting the stage for a more significant recovery.