Bitcoin News Today: HBAR Slides on Broken Bear Flag as Crypto Selloff Intensifies

HBAR, the native token of the Hedera Hashgraph platform, faces renewed selling pressure as key technical indicators suggest a potential 28% drop. A bear flag pattern has broken, with the price trending lower amid a broader risk-off sentiment across the cryptocurrency market. Analysts are watching whether the token can find support near critical levels or if the downtrend will continue. Meanwhile, broader market dynamics-including regulatory uncertainty and shifting investor sentiment-add further complexity to the outlook for HBAR holders and traders according to recent reports.

The recent slump in HBAR comes amid a broader downturn in the crypto market, with major assets like Bitcoin and Ethereum also experiencing declines. The price of Bitcoin, for instance, has fallen below $90,000, and Ethereum has slipped below $3,000. Despite this, some alternative tokens have shown relative strength, with XRP and Solana attracting ETF inflows while Bitcoin faces outflows. This divergence has raised questions about how different parts of the crypto market are responding to macroeconomic factors and regulatory developments as indicated by recent data.

In a twist that offers cautious optimism for HBAR, some institutional investors remain active in the space. The recent approval of Bitcoin spot ETFs in the U.S. has opened the door for more institutional capital to flow into crypto markets. While HBAR is not directly tied to ETF activity, the broader acceptance of crypto by traditional finance investors could provide a tailwind in the longer term. For now, however, the bearish momentum remains intact for HBAR.

How Markets Reacted

HBAR's price has struggled to find buyers in the wake of the bear flag breakdown. A close below key support levels could trigger further selling, pushing the token closer to a 28% drop from recent highs according to technical analysis. Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) reinforce the bearish bias, suggesting that momentum remains on the downside. If the downtrend continues, HBAR could face increasing pressure from short-term traders and algorithmic selling.

The broader market downturn has also been amplified by regulatory uncertainty. Delays in the U.S. Clarity Act have caused significant outflows from crypto ETPs, with global investment products seeing $952 million in outflows last week. While HBAR is not a major component of most ETPs, the shift in investor sentiment has contributed to a more cautious environment for all digital assets, including HBAR.

What Analysts Are Watching

Market observers are closely monitoring whether HBAR can hold key support levels to avoid a deeper correction. A rebound above the 50-day Exponential Moving Average (EMA) at $2.12 could signal a potential reversal, but failure to reclaim this level would keep the bearish scenario intact. Analysts are also watching for signs of increased buying interest, particularly from institutional investors who may see value in the token as prices fall.

In the broader crypto space, the approval of Kraken's pending IPO has been cited as a potential catalyst for renewed interest from traditional finance investors. While HBAR is not involved in the Kraken listing, the broader narrative of crypto assets gaining legitimacy in the traditional financial system could influence investor behavior over time. For now, however, the focus remains on short-term price action and technical levels.

Risks to the Outlook

Despite the bearish technical outlook for HBAR, several factors could influence its trajectory in the coming weeks. Regulatory clarity-or lack thereof-remains a key variable. If the U.S. Clarity Act moves forward, it could reduce uncertainty and spark renewed demand for crypto assets as recent reports indicate. Conversely, further delays could prolong the current bear market and lead to more selling pressure across the sector.

Another risk factor is the broader macroeconomic environment. With global markets facing inflation concerns and shifting monetary policy, investors may continue to favor cash over high-risk assets like crypto. This could prolong the downtrend for HBAR and other altcoins unless there is a significant shift in market conditions.

For now, HBAR investors are advised to remain cautious and closely monitor price action. While the technical outlook is bearish, the broader market environment and regulatory developments could provide new catalysts for price movement in the near future.