Key Insights
- HBAR price fell 11% this week as the ETF excitement faded following a strong market rally.
- The newly launched HBAR ETF gained $32 million in inflows, showing modest investor interest.
- Technical patterns suggest continued weakness, with a potential decline toward the $0.1500 support level.
Hedera’s HBAR token declined sharply after touching an important resistance level this week. The digital asset dropped 11% from its weekly peak, falling to $0.1965. This decline marks a 12% retreat from its recent high and extends a 50% slide from its year-to-date peak. The pullback came after the brief surge triggered by optimism surrounding the launch of the HBAR exchange-traded fund.
Investors had built significant expectations ahead of the ETF launch, driving short-term demand for HBAR. However, the enthusiasm quickly waned as the market reacted to the news, a common “buy the rumor, sell the news” trend in crypto markets. As traders shifted focus, HBAR’s value weakened further despite continued ETF inflows.
HBAR ETF Sees Gradual Inflows
Data from SoSoValue indicated steady yet moderate interest in the newly listed HBAR ETF. The fund registered $2.2 million in inflows on launch day and grew to $29 million a day later, bringing total inflows to $32 million. Although this surpasses Litecoin’s $485,000, it remains far below Solana’s $154 million ETF inflows. The difference reflects Solana’s stronger position in decentralized finance, with over 387 DeFi applications and $12.3 billion in total value locked compared to Hedera’s 23 apps and $194 million TVL.
The broader crypto market downturn intensified after the Federal Reserve’s hawkish rate decision on Wednesday, which prompted widespread risk aversion. Hedera followed the trend, erasing part of its earlier gains. Technical indicators reinforce the bearish momentum. HBAR has moved below the Supertrend indicator and the Ichimoku cloud. Additionally, its 50-day and 200-day exponential moving averages formed a death cross, signaling continued downside pressure.
Outlook
If selling pressure persists, analysts expect the token to test the psychological support level near $0.1500. A rebound above the descending trendline connecting the July highs would indicate renewed strength. Until then, market sentiment remains cautious as investors watch for the next catalyst in the digital asset sector.
