The price of Hedera (HBAR) has experienced a significant decline in recent sessions, recording a 15% pullback that pushed the altcoin below the $0.100 level. At the time of writing, HBAR is trading near $0.091. This sharp drop closely mirrors Bitcoin's price action, with HBAR sharing a strong correlation of 0.98 with BTC. The move was largely attributed to broader market pressure, particularly after Bitcoin fell below $80,000, rather than any fundamental weakness in the Hedera network itself.
Despite the price weakness, on-chain and technical indicators are painting a more nuanced picture. The Chaikin Money Flow (CMF) indicator shows a notable bullish divergence over the past four days, forming lower highs while the HBAR price printed lower lows. This pattern signals growing capital inflows despite the declining price, suggesting investors are accumulating during the downturn.
Furthermore, the Relative Strength Index (RSI) has dropped below the 30.0 threshold, placing HBAR firmly in oversold territory. Historically, such conditions indicate selling exhaustion and often precede a slowdown in sell orders, potentially attracting value-seeking buyers.
From a chart perspective, HBAR has been moving within a descending broadening wedge pattern for roughly a month, following a failed breakout attempt in mid-January. A confirmed breakout from this wedge could project a 43% rally toward $0.146. In the near term, reclaiming the $0.103 level is crucial, with a move toward $0.114 needed to confirm early breakout momentum.
The analysis is supported by Hedera's underlying fundamentals. The network continues to gain attention for its enterprise focus, governance model, and low-cost transactions. Recent developments include being highlighted as a top sub-$1 altcoin after a strong January performance, discussions around potential institutional products, and a new partnership with McLaren Racing. These factors help explain why selling pressure hasn't led to a complete unraveling, with the price showing more stabilization than free-fall compared to other altcoins.
Key price levels to watch this week include immediate support at the $0.088–$0.090 band. A hold above this zone could see targets at $0.096 and then $0.102. Conversely, a break below $0.088 could see HBAR test the $0.083–$0.085 area, with $0.078 as a further downside target if selling pressure intensifies. The primary risk remains continued weakness in Bitcoin, which could override HBAR's positive technical signals.
