Key Takeaways
- Hedera (HBAR) is poised to end its prolonged descending channel pattern as sentiment shifts following Canary Capital’s HBAR ETF approval.
- Price action suggests that a major HBAR rally could only occur if it breaks and closes a daily candle above the $0.22 level.
- Derivatives data from Coinglass reveals that intraday traders hold a bearish outlook, having built $7.97 million in short positions at the $0.207 level.
The launch of Canary Capital’s HBAR Exchange-Traded Fund (ETF) on NASDAQ has sparked renewed optimism among investors and traders. The ETF’s debut not only boosts market confidence but could also serve as the key catalyst to end HBAR’s 90-day bearish trend and set the stage for a potential breakout.
HBAR ETF Approval and Rising Price
So far, on its first day of trading, Canary’s HBAR ETF has witnessed an inflow of $8 million. Moreover, its trading volume has surged by 445% to reach $1.03 billion.
The approval and launch of the ETF initially pushed HBAR’s price up by over 19%. However, due to the presence of a key resistance level, most of those gains faded, causing the asset to decline notably.
At press time, HBAR is trading at $0.20, reflecting a 3.35% price increase today, according to TradingView data. However, market participation has declined, as evident from the trading volume, which has slipped by 29% to $604.09 million.
HBAR Price Action and Technical Analysis
TimesCrypto’s technical analysis on the daily chart suggests that HBAR has been hovering within a descending channel pattern between the upper and lower boundaries since July 2025.
Recently, following the ETF approval, the asset reached its upper boundary but failed to break out. However, it is now once again heading toward the upper boundary.
Based on the recent price action, if HBAR’s upward momentum continues and it breaks out of the descending channel pattern, there is a strong possibility that it could soar by 31.65% and reach the $0.30 level.
However, the bullish thesis will only hold if HBAR maintains support above the $0.195 level or closes a daily candle above $0.22. If it fails to do so, the bullish outlook may be invalidated.
At press time, HBAR’s Average Directional Index (ADX) reached 38.38 (above the key threshold of 25), indicating strong directional momentum, which currently appears to be a bullish signal for token holders. Meanwhile, the CMF value has risen to 0.04, indicating increasing buying pressure and higher capital inflows into the asset.
HBAR Traders Maintain Bearish Outlook
Despite the bullish developments and price action, trader sentiment remains bearish, with many appearing to bet heavily on short positions, according to derivative data from Coinglass.
The data shows that HBAR’s major liquidation levels stand at $0.1908 on the lower side and $0.207 on the upper side. At these levels, traders have built $4.52 million in long positions and $7.97 million in short positions.
Combining all these developments from the ETF approval to the price action and major liquidation levels, it appears that HBAR might face short-term struggles but holds strong long-term potential.
