HBAR Struggles in Consolidation Amid Weak Inflows and Waning Bitcoin Ties

HBAR Faces Consolidation Challenges Amid Weak Inflows and Bitcoin Correlation Decline

HBAR, the native token of the Hedera network, has been grappling with consolidation challenges in recent days, as weak inflows and a declining correlation with Bitcoin have hindered its price recovery. The altcoin has struggled to maintain upward momentum after failing to breach the $0.40 resistance level earlier this month, pushing its price down to $0.30 and returning it to a familiar trading range.

The Chaikin Money Flow (CMF) indicator suggests weak inflows into HBAR, reinforcing skepticism among investors. Following its failed breakout attempt, the indicator remains near the zero line, indicating limited new capital entering the asset. Without a surge in buying activity, HBAR may continue consolidating in its current range. Most HBAR holders appear hesitant to commit funds until the cryptocurrency successfully breaches the $0.40 resistance, reflecting broader market uncertainty as traders await a clearer bullish signal.

HBAR’s correlation with Bitcoin has dropped to 0.64 in recent days, signaling a weakening connection between the two assets. A continued decline in this correlation could be bearish for HBAR, as Bitcoin is currently on track to breach the $105,000 resistance. If HBAR fails to follow BTC’s lead, it may lag behind in market-wide gains. A low correlation with Bitcoin can isolate HBAR from broader market rallies, making it more dependent on individual investor sentiment. With Bitcoin showing strong bullish potential, HBAR’s divergence could prevent it from capitalizing on the overall crypto market’s upward trajectory.

HBAR has fallen back into the month-long consolidation range it experienced between December 2024 and early this year. The price is now trapped between $0.33 and $0.25 after losing the $0.33 support. This setback has reintroduced bearish pressure, increasing the likelihood of further downside movement. If consolidation continues, HBAR remains at risk of dropping toward $0.25. A loss of this critical support level could trigger panic selling among investors, potentially pushing the altcoin further down to $0.20. The lack of strong inflows further weakens the case for an immediate recovery.

However, if HBAR reclaims $0.33 as support, it could regain bullish momentum.