Key Insights:
- HBAR ETF filing fails to boost price, dropping 9% in 24 hours.
- Analyst predicts $0.33 target, but HBAR struggles to hold support.
- Institutional adoption may drive long-term gains despite short-term sell-off.
Nasdaq has filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s spot Hedera exchange-traded fund (ETF). Despite this, Hedera’s price has dropped 9% in the past 24 hours to $0.2299. The decline raises uncertainty about HBAR’s ability to reach $0.40 in the coming weeks.
HBAR ETF Filing Sparks Market Excitement, But Price Slumps
On Monday, Nasdaq submitted a regulatory filing to the SEC, requesting approval to list Grayscale’s spot HBAR ETF. A 19b-4 form is crucial in the ETF approval process, as it sets the stage for official SEC consideration. However, Hedera’s price has failed to react positively, contradicting the market’s usual response to ETF filings.
According to data, HBAR has lost 9.23% in a day, despite a 17.5% weekly gain leading up to the announcement. This decline suggests that while long-term sentiment remains bullish, short-term traders are cashing out profits, contributing to the latest price correction.
ETF analyst Eric Balchunas previously noted that Hedera and Litecoin ETFs have a strong chance of securing SEC approval. His optimism aligns with broader expectations that the next wave of crypto ETFs could extend beyond Bitcoin and Ethereum.
Still, the market remains volatile, and HBAR’s price action does not align with the ETF hype—at least not yet.
Hedera Price Technical Setup: A Reversal or More Pain Ahead?
Hedera price action indicates that HBAR has broken out of a descending channel but is struggling to maintain bullish momentum. A 9% daily drop suggests uncertainty among traders, despite technical indicators flashing mixed signals.
Analyst Cas Abbé highlighted an RSI breakout and a bullish MACD cross, suggesting that momentum is shifting in favor of the bulls. He predicted HBAR could reach $0.33 before facing a brief correction, followed by a potential push toward new all-time highs.
However, current price action tells a different story. If HBAR fails to reclaim $0.23 as support, the token could dip further, possibly testing $0.21 in the short term. On the upside, a break above $0.31 could open the door to $0.40, aligning with Fibonacci extension targets.
Will Hedera’s Institutional Adoption Fuel a Rally?
Hedera’s network is backed by enterprise-grade adoption, setting it apart from traditional blockchain platforms. Jonathan Dotan, founder of EQTYLAB, emphasized that Hedera’s infrastructure, supported by major players like Dell Technologies, provides scalability and security crucial for enterprise adoption.
Unlike many blockchain networks, Hedera operates on a Hashgraph consensus model, designed for higher efficiency and security. This differentiator has attracted institutions, but the question remains—will institutional demand be enough to counter the short-term selling pressure?
Investors are keenly watching regulatory developments with Grayscale’s HBAR ETF now under SEC review. If the SEC acknowledges the filing and moves toward approval, it could trigger a wave of institutional inflows, potentially driving HBAR back toward $0.40 and beyond.
Can HBAR Recover to $0.40?
Hedera price structure remains bullish despite a 9% daily decline. If buying momentum returns, key resistance levels include $0.31 at the Fibonacci 0.618 retracement and $0.40, the previous local high. A breakout above these levels could push HBAR toward the long-term Fibonacci 1.618 extension at $0.54. However, if the price drops below $0.23, further losses may follow, with $0.21 acting as a critical support level.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
