The correlation of HBAR with Bitcoin has dropped to 0.48, its lowest level in two months. This weakening of the connection indicates that the altcoin is beginning to move independently of Bitcoin's price.
While independence can sometimes generate unique spikes, it often leaves smaller assets more vulnerable during volatile periods.
This divergence could harm HBAR's short-term prospects, especially since Bitcoin is trading near $122,000 and approaching its all-time high.
Historically, altcoins have benefited from rallies driven by Bitcoin, but a decoupling at this critical stage could mean that HBAR misses the broader market upturn.
On the technical front, the Relative Strength Index (RSI) is struggling to stay above the neutral mark of 50.
A sustained rise above this level would indicate bullish strengthening, but HBAR has not managed to establish it as support so far. This shows the persistent uncertainty among traders.
If the RSI continues to decline, it would push HBAR into bearish territory and limit any potential recovery attempts. The lack of strong buying momentum suggests that investors are hesitant to return to the market.
HBAR is trading at $0.2158 at the time of writing this article. The token recently attempted to break a descending wedge pattern.
However, it has struggled to maintain its upward momentum, making the breakout uncertain.
If the bearish pressure intensifies, the failed breakout could cause HBAR to fall towards $0.206, testing the lower trend line as support. Such a drop would confirm the continuation of the current bearish trend and extend the consolidation phase of the altcoin.
However, if the bullish sentiment returns, HBAR could bounce at the level of $0.219 and rise towards $0.230.
A move beyond this resistance would confirm a successful breakout, potentially driving the price up to $0.242 and invalidating the bearish outlook.
