In recent trading sessions, HBAR has been hovering around the $0.111 mark, facing mounting selling pressure while institutional demand, particularly through exchange-traded products (ETPs), remains stagnant. Notably, the Canary HBAR ETF experienced zero inflows on December 22, just weeks after its launch, highlighting a lack of interest from both retail and institutional investors.
Hedera’s entry into the spot crypto ETF market was initially met with optimism as major altcoins were expected to follow in the footsteps of Bitcoin and Ethereum, benefiting from regulated investment products. This optimism was bolstered by Hedera’s notable enterprise partnerships and a focus on compliance, positioning it well for institutional adoption. However, recent data from SoSoValue challenges this optimistic narrative, revealing that the Canary HBAR ETF saw no new capital influx, further indicating a lack of institutional appetite.
The absence of inflows raises concerns about HBAR’s ability to withstand ongoing market pressures. With a lack of sustained demand, the token faces a significant risk of further declines.
Technical analysis shows deepening weakness for HBAR. A key metric, on-balance volume (OBV), has fallen to its lowest level in nine months, indicating that selling activities are dominating recent trading. A declining OBV often signals that selling pressure is greater than buying interest, reinforcing the narrative of a sustained downturn rather than mere profit-taking.
Over the past six weeks, HBAR has been trapped in a downtrend, making repeated unsuccessful attempts to break through the resistance at the $0.120 level. Without any clear catalysts to boost demand, there’s a growing possibility of additional declines. If HBAR breaks below the crucial support level of $0.110, analysts suggest it could slide further to approximately $0.099, which would exacerbate its bearish momentum.
While some analysts believe stabilization could occur if the token maintains current levels and works to establish a foothold, the prevailing sentiment remains cautious as it continues to grapple with downward pressure and technical weaknesses.
