Hedera (HBAR) has recently experienced a significant downturn, sliding below the $0.10 mark amid ongoing selling pressure and broader market weakness. This decline comes unexpectedly, even with a new partnership with McLaren F1.
HBAR’s Recent Price Decline
The price of Hedera has dropped alongside other cryptocurrencies, reaching intraday lows close to $0.10. Following a severe dip on January 19, HBAR managed a slight recovery to around $0.115. However, massive selling pressure in the risk asset market has led bullish investors to retreat, overshadowing any potential for upward movement.
This trend is mirrored across the altcoin ecosystem, as Bitcoin struggles below $90,000. Amid profit-taking influenced by macroeconomic and geopolitical headwinds, Bitcoin hit lows of $87,700 and is currently hovering around $89,230.
HBAR Faces Challenges Despite McLaren Partnership
Altcoins like HBAR are at risk of further price declines. Despite announcing a major multi-year partnership with McLaren Racing, Hedera has struggled to regain momentum. This collaboration makes Hedera an official partner of the McLaren F1 team.
Several crypto companies, including Coinbase and Crypto.com, have already engaged in significant sports sponsorships. Hedera hopes to expand its reach through this latest initiative.
“Working with one of the most recognized sports brands in the world is a significant milestone for the Hedera ecosystem. It allows us to demonstrate what Web3 can look like when built on a network that people can trust, and when linked to experiences that fans genuinely seek,” said Charles Adkins, CEO of HBAR, Inc.
Technical Analysis of HBAR
The HBAR chart indicates a pronounced bearish structure, with the price significantly below key moving averages. The altcoin has been in a sustained downtrend since reaching highs of $0.35 last January.
Technical indicators suggest further downside risk, as HBAR broke below the $0.12 support earlier this month and is now around $0.10. Oscillators like the RSI are trending downward, indicating a bearish outlook. If buyers cannot reclaim the $0.11 level, losses could accelerate toward the October lows around $0.0976.
Hedera’s market capitalization stands at approximately $4.65 billion, reflecting a 65% drop from July peaks, compounded by a decrease in total value locked to $61.5 million and a 16% reduction in stablecoin supply over the past week.
Traders in HBAR futures have increased their short positions, anticipating ongoing pressure despite the lack of ETF inflows. Analysts noted that while a rebound could reach $0.16, current indicators favor either a consolidation or a deeper correction unless Bitcoin stabilizes. At present, BTC faces pressure as investors shift towards gold.
Meet William, a proud Bethel University alumnus with a fervent passion for lifestyle and culture topics. His keen interest doesn’t stop there; he’s also deeply engrossed in current events of all kinds. William dedicates himself wholeheartedly to this site, thriving on the collaborative energy he shares with Suzanne, his long-standing partner in crime.
Having navigated their university courses side by side for years, their teamwork on the site is nothing short of dynamic. Together, they bring a unique blend of insights, proving that two heads are indeed better than one in delivering compelling content.
