Doge Pepe
Zylo Ecosystem
Crawlerpad
Pearl
Quantus
Starknet
Quant
HBAR Crypto price stabilized today, Nov. 5, as the recent crash stalled. Hedera token was trading at $0.1713, a few points above this week’s low of $0.1583. It remains 42% below its highest level in July this year. So, what next for the token as its ETF inflows rise?
HBAR ETF Inflows Have Crossed $60 Million in Assets
The most critical Hedera news of last week was the launch of the Canary HBAR ETF in the United States. This fund has become highly successful considering that it happened during a period of crypto market crash.
Data compiled by SoSoValue indicate that the fund has experienced robust inflows since its launch. It added assets worth $1.57 million on Tuesday, bringing the cumulative total to $68 million.
Most importantly, the fund has experienced daily inflows since its launch. Its total assets have also crossed the $60 million milestone, which is equivalent to 0.58% of its assets.
Hedera’s assets are much lower than Solana’s, whose inflows have jumped to $284 million. At the same time, the net assets have soared to $488 million. This divergence is normal as Solana is a bigger and more popular coin than Hedera.
Its assets are also much higher than those of Litecoin. It has gained just $2.8 million in assets since its launch last week. HBAR crypto is the bigger and more popular coin compared to the name Hedera Hashgraph.
Why Hedera Price Has Crashed Despite HBAR ETF Inflows
HBAR crypto has crashed in the past few days despite the ETF approval and inflows for several reasons. First, it dropped due to a situation known as “buy the rumor, sell the news.” Investors buy an asset ahead of a major news event. They then sell it once the news breaks.
HBAR ETF surged to a high of $0.2195 before its approval. It has since plunged as momentum faded. Second, the token has crashed because of the ongoing crypto market crash. This has affected Bitcoin and most altcoins.
Bitcoin price dropped slightly below the critical support level at $100,000. On the other hand, the market capitalization of all tokens has fallen by over $700 billion from the peak this year.
Third, demand for Hedera in the spot and futures markets has continued falling this month. The futures open interest has dropped to $135 million, down from a high of $450 million in October. Falling open interest is a sign that deleveraging is continuing, indicating low demand for the asset.
The volume of HBAR crypto in exchanges has dropped to $478 million from over $1 billion a few months ago. There are ongoing concerns about Hedera’s ecosystem. Its total value locked (TVL) has dropped over 22% in 30 days to $172 million.
It only has a handful of decentralized applications (dApps) in its ecosystem. Its TVL is much lower than that of other newly launched platforms, such as Sonic, Plasma, Unichain, Katana, and Linea.
HBAR Crypto Price Technical Analysis
The daily chart reveals a clear downward trend in HBAR crypto. Its price has steadily declined over the past few months. This crash has pushed it from a high of $0.3042 in July to $0.1710 today.
Hedera price has formed a nearly perfect descending channel, which is likely part of the bullish flag pattern. This channel could be part of the second phase of the Elliot Wave pattern, which is followed by the third one/. It is usually the longest one.
HBAR price is also in the process of forming a double-bottom pattern at 0.1548 and a neckline at $0.2185. Therefore, the token is expected to rebound in the coming weeks or days.
If this happens, the next key level to watch will be at $0.2185. A move above that level will signal further gains, potentially reaching $0.3042, its highest level since July.
