HBAR Faces 123% Rally Potential Amid Bitcoin Correlation
2min read HBAR, the native token of the Hedera network, is facing a critical juncture in May 2025 as it starts the month at approximately $0.1834. The cryptocurrency market is closely monitoring HBAR's trajectory following a notable decline in futures trading activity. This shift underscores HBAR's growing dependence on actual spot market purchases to drive its price movements. The cryptocurrency market is also observing Bitcoin nearing the $100,000 mark, and HBAR's strong correlation with Bitcoin poses both opportunities and risks. A significant breakout in Bitcoin could propel hbar to new heights, while a sharp decline in Bitcoin's price could exacerbate any downward trends in HBAR.
The decrease in futures trading activity indicates a change in how HBAR investors are participating in the market. Reduced interest in highly leveraged positions could signal more stable growth ahead. Ongoing network developments and improved institutional sentiment may position HBAR for a significant turning point. However, key technical indicators for HBAR reveal warnings about a potential death cross formation, which typically indicates upcoming price volatility. Traders are bracing for sudden market swings as a result.
Bitcoin's path significantly influences HBAR, demonstrating an increasing correlation with the broader cryptocurrency market. Bitcoin's recent 13% gain over the last 30 days has brought it closer to the $100,000 price level. Historically, HBAR has performed better than Bitcoin during market rallies but has also experienced sharper declines during significant market downturns. Analysts suggest that a strong Bitcoin breakout past the $100,000 level could significantly boost HBAR's performance, attracting new capital inflows and improving investor confidence. However, if Bitcoin struggles near this price point, HBAR could face considerable downward selling pressure, potentially retesting its weaker support levels or entering bearish territory.
Current technical indicators for HBAR present a mixed picture, with both significant opportunities and downside risks. Analysts project a possible strong rally toward the $0.40 target if HBAR can build sustained buying momentum, representing a potential 123% surge from its current trading price. However, achieving this target requires overcoming several strong overhead resistance zones. Conversely, a potential death cross technical pattern looms ahead for HBAR prices, which could signal deeper market corrections. If confirmed, HBAR could retest its key support level near $0.16, with additional declines potentially reaching $0.124 or even $0.0053 under extremely bearish conditions.
As May progresses, HBAR is at a critical market inflection point due to reduced speculative activity, increasing technical pressures, and its strong correlation with Bitcoin's movements. While HBAR retains solid rally potential, particularly if Bitcoin stages a significant breakout, a clear bearish reversal threat persists. The shift toward spot volume indicates a more cautious sentiment, while HBAR's technical indicators present both opportunities and significant future hazards. The token's next major price movement will largely depend on broader cryptocurrency market sentiment and investor willingness to take risks. Hedera's price path through the conclusion of May remains highly uncertain.
