Institutional Interest Grows as Price Falters

Hedera Hashgraph (HBAR) is presenting a conflicting picture for investors. While the digital asset has achieved a significant milestone with the launch of an HBAR exchange-traded fund (ETF), its price performance has been disappointing. The new ETF has recorded six consecutive days of net inflows, and trading volume surpassed $10 billion in October, yet the token’s price continues to decline, threatening to fall below the $0.10 mark.

The HBAR ETF has seen consistent interest since its debut, accumulating a total net inflow of $69.93 million over six days. Data shows daily inflows of approximately $1.92 million, with peak days on October 30 and November 3, which saw inflows of roughly $30 million and $22 million, respectively. This trend suggests growing recognition from institutional and traditional traders, which is further supported by a surge in network activity.

Technical Indicators Signal Weakness

Despite the positive off-chain metrics, HBAR’s price chart tells a different story. The token is trading below its 50-day Exponential Moving Average (EMA) and a key descending trendline, both acting as significant resistance levels. This weakness is reinforced by bearish signals from technical indicators.

The Relative Strength Index (RSI) is nearing oversold territory, and the MACD indicator has crossed back into negative territory. These readings indicate that sellers currently dominate the market. Without a strong wave of buying pressure to counter this momentum, HBAR’s path of least resistance appears to be downward, making a drop below $0.10 a distinct possibility.

The Risk of a Long Squeeze

An analysis of market liquidity reveals another potential headwind for Hedera. A significant cluster of leveraged long positions has built up around the $0.16 level, creating what traders call a “liquidation magnet.” Because price action often moves toward areas of high liquidity, a dip to this level is a viable scenario.

If the price falls to $0.16, it could trigger a cascade of forced selling as these long positions are liquidated—an event known as a long squeeze. This could accelerate the price decline, potentially pushing HBAR back to its recent low of $0.080 or even further. With less liquidity visible at higher price levels, a significant upward move appears less likely in the immediate future, leaving the market structure decidedly bearish for now.

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