After months of decline that left HBAR investors in the red, the cryptocurrency is showing signs of a potential recovery.
With recent updates signaling a shift in investor sentiment, HBAR has begun to move out of its downtrend. A key factor contributing to this turnaround is the addition of HBAR to Grayscale’s Smart Contract Fund.
HBAR Joins The Big Leagues
The Chaikin Money Flow (CMF) indicator has recently highlighted a significant uptick in inflows into HBAR, pointing to a shift in market sentiment. This surge is largely attributed to the positive news surrounding HBAR’s addition to Grayscale’s Smart Contract Fund.
The fund, which includes leading cryptocurrencies like Ethereum (ETH), Solana (SOL), Cardano (ADA), Sui (SUI), and Avalanche (AVAX), now has HBAR making up 5.89% of its total holdings. Investors are keen to capitalize on this, fueling a sharp rise in HBAR’s trading volume and inflows.
This newfound investor interest reflects the growing optimism surrounding HBAR. As the altcoin joins other top-tier assets in Grayscale’s portfolio, its market visibility has significantly increased.
Looking at the broader macro momentum, technical indicators like the Moving Average Convergence Divergence (MACD) suggest a shift toward bullish sentiment. The MACD has shown a continued bullish crossover, which typically signals an increasing buying momentum.
With the current upward momentum, HBAR will likely continue to push higher, breaking past resistance levels and building on its recent positive developments. The strengthening MACD further supports the likelihood of sustained bullish behavior, indicating that HBAR may recover its previous losses and also potentially gain further ground in the coming weeks.
HBAR Price Frees Itself
Currently priced at $0.161, HBAR is positioned just under the key resistance level of $0.163. While facing this resistance, HBAR has already managed to clear a more significant hurdle: breaking free from a two-month downtrend that had hindered its recovery efforts.
Given the strong support from recent market events, it seems likely that HBAR will secure $0.163 as a base, gradually making its way past $0.172. From there, the price could potentially reach $0.180, further reinforcing the bullish outlook.
However, there is a risk that premature selling by investors could derail this potential recovery. If profit-taking becomes too aggressive, HBAR’s support level of $0.154 could come under pressure, possibly resulting in a fall to $0.145 or even $0.139. Such a drop would invalidate the bullish thesis and suggest a potential continuation of the altcoin’s struggles.
Disclaimer
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