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- HBAR dropped 6% to $0.1925 as trading volume plunged 38%.
- Derivative data shows $7.24M in shorts vs $2.9M in longs.
- $45M ETF inflows offer some optimism amid technical weakness.
Hedera’s native token, HBAR, continued its decline for a second consecutive day, dropping over 6% to trade around $0.1925. The dip comes alongside a 38% plunge in trading volume to $512 million, signaling reduced market participation and waning bullish momentum. Derivative data from CoinGlass reveals a growing wave of short positions, reinforcing the market’s negative sentiment.
At the time of writing, $7.24 million in short positions outweigh $2.90 million in longs, with key liquidation levels set at $0.1888 (support) and $0.1972 (resistance). Should HBAR fall below the $0.1888 mark, long positions are likely to be liquidated, potentially accelerating downward pressure.
Technical Indicators Reinforce Bearish Outlook
Daily chart analysis confirms that HBAR remains locked in a descending channel, trading below its 200-day Exponential Moving Average (EMA). This structure has guided the asset into a prolonged downtrend. The recent price movement has begun forming a bearish candlestick pattern, partially confirming further downside potential.
If HBAR’s daily candle closes below $0.188, analysts expect a deeper drop—possibly over 24%, targeting the $0.142 region. The Average Directional Index (ADX) reading of 34.24 suggests strong downward momentum, while the Supertrend indicator remains firmly red, signaling continued selling pressure.
ETF Inflows Offer a Glimmer of Hope
Despite the bearish setup, some optimism remains. The recent approval of a spot HBAR ETF in the United States, managed by Canary Capital, has attracted $45 million in inflows since launch. This suggests that institutional confidence in Hedera’s long-term potential is growing—even as short-term sentiment stays bearish.
🔥 The Canary $HBAR ETF (HBR) is growing. Over 235 million Hedera tokens worth around $45M make up the product since launching. pic.twitter.com/C2syH1EvnR
— ALLINCRYPTO (@RealAllinCrypto) October 31, 2025
Also Read: HBAR ETF Sees $30M Inflows as Hedera Hashgraph Prepares for Next Crypto Breakout
A sustained breakout above the descending channel, supported by consistent ETF inflows, could shift momentum back toward the bulls. For now, however, traders appear unconvinced that HBAR can break resistance near $0.1972.
Outlook
Unless HBAR closes decisively above its channel and regains the 200-day EMA, the downtrend remains intact. While ETF inflows hint at institutional optimism, technical signals and derivatives data continue to point toward caution in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
