HBAR has been experiencing significant upward momentum recently, rising 27% over the last 24 hours to reach a 4-month high.
This surge has brought the altcoin’s market cap to $10.74 billion, surpassing Bitcoin Cash and capturing the attention of investors. The rally shows strong demand but raises concerns about potential profit-taking.
HBAR Inflows Signal Danger
The Chaikin Money Flow (CMF) indicator has shown sharp inflows into HBAR, signaling positive market sentiment. However, as the CMF approaches the 0.20 threshold, it suggests that the altcoin may be nearing overbought conditions. This could lead to a reversal in price if HBAR’s rally cools, triggering a pullback.
As HBAR rises further, investor caution becomes more relevant. The possibility of a price drop grows, as markets often correct when they approach overheated levels. If the CMF crosses the 0.20 mark, it may confirm that the rally has run its course, prompting profit-taking and a potential short-term decline.
HBAR’s correlation with Bitcoin, which is sitting at a strong 0.94, supports the idea that HBAR could avoid a sharp correction. Bitcoin is nearing $120,000, approaching a new all-time high (ATH). As Bitcoin strengthens, it lifts other cryptocurrencies, including HBAR, due to their shared market sentiment and investor behavior.
This correlation offers protection to HBAR from a potential price drop despite its overbought conditions. Bitcoin’s rise could help sustain HBAR’s current momentum, encouraging continued interest and investment in the altcoin.
Can HBAR Price Continue Rising?
At the time of writing, HBAR is trading at $0.250, just at the key resistance level of $0.250. The 27% rise over the last 24 hours has pushed HBAR to a 4-month high, and the altcoin is poised to continue its upward trajectory if it can breach this resistance level.
To maintain the current bullish momentum, HBAR must secure the $0.250 level as support. This would confirm the recent price action and provide the altcoin with a path to reach $0.267. Bitcoin’s continued strength will likely play a significant role in pushing HBAR past this critical level.
However, if HBAR fails to breach $0.250 or experiences significant selling, the altcoin could fall back to $0.220, and potentially even lower to $0.188. This would invalidate the bullish thesis and suggest a reversal in the altcoin’s recent surge.
Disclaimer
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