Hedera (HBAR) has achieved a remarkable 26% gain over the past week, boosting optimism among traders and investors. This sudden increase has enhanced market sentiment and energized portfolios that include the altcoin.
Nevertheless, on-chain data and technical indicators suggest the rally may not be as genuine as it seems, casting doubt on its sustainability in the near future.
Hedera Investors Need To Step Up
The weighted sentiment for HBAR has sharply increased in recent days, indicating growing investor confidence. This rise in positive sentiment aligns with the launch of Canary Capital’s spot HBAR exchange-traded fund (ETF), which commenced trading earlier this week.
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The ETF’s launch has significantly boosted social discussions surrounding the token, inspiring bullish expectations for the short term. However, history indicates that sudden surges in investor enthusiasm can be a double-edged sword.
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From a macro perspective, the Chaikin Money Flow (CMF) indicator presents a more cautious outlook. Despite the price increase, CMF data reveals no corresponding rise in inflows, suggesting that the bullish momentum lacks substantial capital support.
Low inflows combined with increased network activity often signal an overheated asset. This discrepancy tends to precede short-term reversals as traders lock in profits and market liquidity tightens. Unless fresh capital enters the market soon, HBAR’s upward trajectory may struggle to maintain its current speed.
HBAR Price Reclaims $0.200
As of this writing, HBAR is trading at $0.2048 after a 26% increase this week, approaching resistance near $0.212. The strong upward trend positions the token just beneath a crucial breakout area, which could dictate its next movement.
If investors start to take profits without a new influx of capital, HBAR may lose support at $0.200 and retreat toward $0.178. Such a decline would reflect a cooling momentum and renewed caution among traders.
Conversely, if the rally receives support from increased inflows driven by the spot ETF, HBAR could surge past $0.217 and target $0.23. Sustaining this level would indicate a continuation of the bullish trend and a revival of investor confidence.
