HBAR Tests Key $0.18 Support as Bitcoin’s $105K Drop Triggers Altcoin Selloff

Quick Take

• HBAR trading at $0.18 (down 1.7% in 24h)
• Bitcoin’s $105K drop triggers broad crypto selloff affecting HBAR
• Testing critical support near 20-day moving average at $0.19
• Institutional confidence signals emerge despite market weakness

Market Events Driving Hedera Price Movement

The primary catalyst affecting HBAR price this week stems from Bitcoin’s substantial decline on October 17, which created a market-wide downturn across cryptocurrencies. This broad-based selling pressure pushed Hedera alongside other altcoins into corrective territory, with HBAR price declining from recent highs as risk sentiment deteriorated across digital assets.

Despite the negative price action, institutional activity suggests underlying confidence remains intact. BitMex’s $417 million Ethereum purchase during the market dip signals that sophisticated investors view current levels as attractive entry points. This institutional buying behavior typically creates positive spillover effects for established Layer 1 protocols like Hedera, though the impact may take time to materialize in HBAR price action.

The cryptocurrency landscape experienced further selling pressure as top crypto assets recorded broad selloffs, creating a challenging environment for HBAR and other altcoins. However, the fact that Bitcoin long-term holders maintained their positions during the decline indicates that the selling pressure may be more technical than fundamental in nature.

HBAR Technical Analysis: Consolidation Near Key Support

Price Action Context

HBAR price currently trades at $0.18, positioned just below the 20-day simple moving average of $0.19, which represents a critical technical inflection point. The current price action suggests Hedera is testing this key support level, with the outcome likely to determine near-term direction. Trading volume of $23.1 million on Binance spot market indicates moderate institutional interest, though below recent peaks.

The broader moving average structure shows HBAR price trading below most significant averages, with the 50-day SMA at $0.21 and 200-day SMA at $0.20 both acting as overhead resistance. This configuration suggests the current consolidation phase could extend before a clear directional break emerges.

Key Technical Indicators

The RSI reading of 40.72 places Hedera technical analysis in neutral territory, suggesting neither oversold nor overbought conditions. This provides room for movement in either direction based on external catalysts. The MACD histogram at -0.0008 shows bearish momentum remains intact but is weakening, potentially setting up for a bullish divergence if HBAR price holds current support levels.

Bollinger Bands analysis reveals HBAR trading in the lower portion of the bands with a %B position of 0.3264, indicating the price remains below the middle band but hasn’t reached oversold extremes. The daily ATR of $0.02 suggests moderate volatility conditions.

Critical Price Levels for Hedera Traders

Immediate Levels (24-48 hours)

• Resistance: $0.19 (20-day moving average confluence)
• Support: $0.17 (24-hour low and technical floor)

Breakout/Breakdown Scenarios

A breakdown below $0.17 support could trigger additional selling toward the $0.15 lower Bollinger Band, representing the next significant support zone. Conversely, a reclaim above $0.19 resistance would target the immediate resistance at $0.23, with the 50-day moving average at $0.21 serving as an intermediate hurdle.

HBAR Correlation Analysis

Hedera price movements continue following Bitcoin’s lead, with the recent decline closely mirroring the broader cryptocurrency market weakness. This high correlation suggests HBAR price will likely remain dependent on Bitcoin’s ability to stabilize and recover from recent lows.

Traditional market correlations appear muted currently, with crypto-specific factors driving price action more than equity market movements. However, any significant shift in risk sentiment from traditional markets could influence HBAR price direction, particularly given the current consolidation phase.

Trading Outlook: Hedera Near-Term Prospects

Bullish Case

A successful defense of the $0.17-$0.18 support zone, combined with Bitcoin stabilization, could trigger a relief rally toward $0.21-$0.23. Continued institutional buying activity and any positive developments in the Hedera ecosystem would support this scenario.

Bearish Case

Failure to hold current support levels amid continued crypto market weakness could push HBAR price toward $0.15 or lower. Extended selling pressure in Bitcoin would likely exacerbate any downside movement in Hedera.

Risk Management

Conservative traders should consider stops below $0.16 to limit downside exposure, while maintaining position sizes appropriate for the current elevated volatility environment. The $0.02 daily ATR suggests intraday swings could be significant.

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