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$HBAR recently failed to breach the key $0.200 resistance level, leading to increased volatility. Despite this setback, the altcoin may experience a short burst of bullishness in the near future.
While challenges persist, the market may see a brief price surge before further fluctuations take place.
$HBAR Is Facing Mixed Signals
The correlation between $HBAR and Bitcoin has dropped to 0.8, inching closer to falling into the negative zone. This indicates that $HBAR is beginning to decouple from Bitcoin’s movements. If the correlation continues to weaken, $HBAR may struggle to benefit from Bitcoin’s recent stabilization above $85,000, as seen in the broader market.
The decline in correlation suggests a shift in market conditions for $HBAR. If it no longer follows Bitcoin’s price actions as closely, the altcoin could face additional challenges. With Bitcoin stabilizing, $HBAR could find itself in a more isolated market position, hindering its ability to rally alongside Bitcoin.
Looking at $HBAR’s macro momentum, technical indicators like the Bollinger Bands show signs of a tightening squeeze. This squeeze is often a precursor to a major volatility spike, which is expected to hit $HBAR soon. Historically, when the candlestick closes below the basis line during such squeezes, a sharp price surge follows.
As the Bollinger Bands tighten, volatility for $HBAR is likely to increase. The squeeze typically leads to a breakout, and in $HBAR’s case, a brief surge in price is expected. However, this spike may be short-lived, with the potential for $HBAR to experience further challenges after the initial burst of movement.
Can $HBAR Price Finally Breach The Key Resistance?
Currently trading at $0.183, $HBAR is struggling to breach the $0.200 resistance. However, the altcoin could be on track to break this barrier in the short term. The current market dynamics suggest that a brief surge past $0.20 is likely, offering a potential opportunity for traders.
Given the market factors, $HBAR could see a short-term price spike before eventually falling back again. This pattern has been evident since mid-January, and it is expected to repeat. As a result, $HBAR could push past the $0.200 resistance and reach $0.222 or $0.250 in the near future.
However, if the declining correlation with Bitcoin continues to weigh on $HBAR’s price, the altcoin may struggle to hold above key support levels. A failure to sustain momentum could result in $HBAR falling below the $0.177 support, potentially dipping to $0.165. This would invalidate the bullish outlook and reinforce the ongoing bearish trend for the altcoin.
coindesk.com
coinedition.com
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