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- HBAR faces short-term bearish trends and must break above $0.064 for a bullish recovery.
- HBAR’s price is 90% below its all-time high.
Hedera’s native token, HBAR, has seen increased attention from crypto enthusiasts, but recent developments suggest caution may be warranted. Even as the token undergoes some short-term bearish pressure, its long-term prospects remain a magnet for institutional money and practical usage.
A recent market analysis also shows that HBAR is currently at short-term bubble risk, which is a bearish sign for the price. The token has been on a downward trend, with the daily chart indicating a breach through the ascending trendline. According to analysts, a price break below $0.036 is expected to be a major trend, indicating the previous bullish outlook has been nullified.
Despite the increasing number of Hedera’s adopters and partners, the token’s price remains stagnant. For the bulls to regain control, HBAR must reclaim the $0.064 level. The analysis of several timeframes shows that it forms the double bottom pattern, indicating that the present bearish trend may not be prolonged. However, any short-term gains will be contingent on market forces and investors’ sentiment.
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HBAR Struggles Against Bitcoin
The comparison with Bitcoin accentuates the problems of HBAR even more. Its BTC value has dropped to its lowest since 2020 and has led to questions about when it will be able to bounce back. This is based on weak performance in its BTC pair, and analysts have said that HBAR could experience further difficulties before any major bullish shift can take place.
One more critical factor is the current price of HBAR, which is 90% lower than the peak value. This drawdown of over 90% supports the current bearish view; nevertheless, prior history shows that tokens that have fallen by 90% from their all-time highs may well recover in the future. Despite its increasing utility and adoption, the price of HBAR has been declining which may suggest the difference between use and price in the market.
Hedera Institutional Support and Real-World Adoption
Despite its short-term challenges, Hedera continues to see growing interest from institutional investors. Recently, Morocco unveiled its 2030 digital strategy, which utilizes Hedera’s network, a major application of the technology. In addition, the Canary Trust has recently been launched, which has provided institutional investors with access to the US HBAR Trust, which may enhance the token’s image among investors.
Steven McClurg, co-founder of Canary Capital, pointed to the need for new investment opportunities that go beyond standard retail offerings. The possibility of institutional money pouring into HBAR in the near future and in the years ahead means that the token could see a massive price increase down the line.
The HBAR Foundation explained that the new trust provides US institutional investors with a way to access digital currency. Hedera network has been widely used for asset tokenization, creating NFTs, and developing Web3 projects, which makes it more attractive to investors.
As previously reported by Crypto News Flash, Microsoft and the Hashgraph Association are set to form a partnership in the near future. The two have previously collaborated on several projects, including their role as founding members of the InterWork Alliance, a platform for tokenization standards.