HBAR Is Facing Mixed Signals as It Stumbles at the Key $0.200 Resistance

HBAR recently failed to breach the key $0.200 resistance level, leading to increased volatility. Despite this setback

HBAR recently failed to breach the key $0.200 resistance level, leading to increased volatility and a setback for the altcoin. Despite this setback, the market may see a brief price surge in the near future as HBAR experiences a short burst of bullishness.

While challenges persist, the market may be able to stomach a small price increase before further fluctuations take place.

The correlation between HBAR and Bitcoin has dropped to 0.8, further impying that it is now inching closer to falling into the negative zone. This correlation drop showcases how HBAR is finally beginning to decouple from Bitcoin’s movements.

If the correlation continues to decrease, HBAR may struggle to benefit from Bitcoin’s recent stabilization above $85,000, as seen in the broader market

The decrease in correlation suggests a shift in market conditions for HBAR. If it no longer follows Bitcoin’s price actions as closely, the altcoin could face additional challenges. With Bitcoin stabilizing, HBAR could find itself in a more isolated market position, hindering its ability to rally alongside Bitcoin.

Looking at HBAR’s macro momentum, technical indicators like the Bollinger Bands show signs of a tightening squeeze. This squeeze is often a precursor to a major volatility spike, which is expected to hit HBAR soon. Typically, when the candlestick closes below the basis line during such squeezes, a sharp price surge follows.

As the Bollinger Bands tighten, volatility for HBAR is likely to increase. The squeeze typically leads to a breakout, and in HBAR’s case, a brief surge in price is expected. However, this spike may be short-lived, with the potential for HBAR to experience further challenges after the initial burst of movement.

Can HBAR Price Finally Breach The Key Resistance?

Currently trading at $0.183, HBAR is struggling to breach the $0.200 resistance. However, the altcoin could be on track to break this barrier in the short term. The current market dynamics suggest that a brief surge past $0.20 is likely, offering a potential opportunity for traders.

Given the market factors, HBAR could see a short-term price spike before eventually falling back again. This pattern has been evident since mid-January, and it is expected to repeat. As a result, HBAR could push past the $0.200 resistance and reach $0.222 or $0.250 in the near future.

However, if the declining correlation with Bitcoin continues to weigh on HBAR’s price, the altcoin may struggle to hold above key support levels. A failure to sustain momentum could result in HBAR falling below the $0.177 support, potentially dipping to $0.165. This would invalidate the bullish outlook and reinforce the ongoing bearish trend for the altcoin.