Hedera price pulled back after hitting an important resistance as the exchange-traded fund approval hype faded.
Summary
- HBAR price has moved into a correction after falling by 11% from its highest point this week.
- The token is falling despite the ongoing HBAR ETF inflows.
- Technicals suggest that the Hedera price will continue falling.
Hedera (HBAR) token dropped to $0.1965, down by 12% from its highest point this week and 50% from the year-to-date high.
HBAR price has crashed because of the ongoing sell-off in the crypto market after the hawkish Federal Reserve interest rate decision on Wednesday.
The token also pulled back as investors sold the HBAR ETF approval news. This is a situation where investors buy an asset ahead of a major event and then sell it once the news event happens.
It happens as the hype surrounding the event fades and as investors start focusing on the next big thing or news event.
Data compiled by SoSoValue shows that the recently-launched HBAR ETF continues to gain mild interest from American investors. It had net inflows of $2.2 million on Wednesday when it was launched, a figure that jumped to $29 million on Thursday.
The cumulative ETF inflows have jumped to $32 million. While this figure is higher than Litecoin’s $485,000, it is much lower than Solana (SOL), whose ETFs crossed the $154 million inflows milestone.
The divergence between the spot Hedera and Solana ETF inflows is understandable because the former is a bigger and more popular player in the crypto industry. Hedera has a market capitalization of over $8 billion while Solana is valued at over $102 billion.
Solana is also more popular among users and developers. It has 387 DeFi dApps with a total value locked of $12.3 billion, much higher than Hedera’s 23 dApps and $194 million in TVL.
Hedera price technical analysis
The daily timeframe chart shows that the HBAR price jumped to a high of $0.2196 on October 28 and then pulled back to the current $0.1950. Its highest level was notable as it coincided with the descending trendline that connects the highest swings since July 27.
The token has moved below the Supetrend indicator, a sign that bears are in control. It remains below the Ichimoku cloud indicator, while the 50-day and 200-day Exponential Moving Averages have formed a death cross pattern.
Therefore, the most likely HBAR price forecast is where it continues its downtrend, and possibly hits the psychological level at $0.1500. On the other hand, a move above that descending trendline will point to more upside.
