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Hedera’s native token, HBAR, has struggled to maintain its recent gains, experiencing a 7% price drop over the past 24 hours. The downturn follows an initial surge triggered by news of an ETF filing but has since been met with weak demand and strong selling pressure.
ETF News Fails to Sustain HBAR’s Rally
On Monday, Nasdaq filed with the U.S. Securities and Exchange Commission (SEC) for approval to list Canary’s ETF, which aims to hold HBAR. The announcement briefly fueled bullish momentum, propelling the token from $0.209 to a 24-hour high of $0.226. However, the excitement was short-lived as buying interest waned, leading to a price retreat to $0.190 at the time of writing.
Technical Indicators Signal Further Decline
HBAR’s price trajectory remains bearish, as indicated by multiple technical metrics. The Balance of Power (BoP) indicator on the 12-hour chart currently sits at -0.50, reinforcing the dominance of sellers in the market. A negative BoP reading suggests that downward pressure outweighs buying activity, increasing the likelihood of further losses.
Additionally, the Chaikin Money Flow (CMF) indicator remains below the zero line, reflecting net capital outflows from HBAR. This persistent decline indicates a lack of accumulation and heightened selling pressure, which could discourage bullish sentiment and encourage short positions among traders.
HBAR Struggles Below Descending Trendline
HBAR has been unable to break above a key descending trendline since reaching its year-to-date high of $0.40. This trendline has acted as a strong resistance level, keeping the asset in a prolonged downtrend. Without a significant influx of buying pressure, the token is likely to remain under bearish control.
If the downtrend continues, HBAR’s price could decline further to $0.169. However, a surge in demand could shift momentum, potentially pushing the token toward $0.247. Until a decisive breakout occurs, traders remain cautious about HBAR’s short-term prospects.
Also Read: Hedera (HBAR) Price Signals Bullish Sentiment as Nasdaq Files for Spot HBAR ETF
Despite the initial excitement surrounding the ETF filing, HBAR’s price has failed to hold its gains, facing strong resistance and weakening demand. Unless buying momentum strengthens, the token remains at risk of further declines 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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
