ETFs were a catalyst in the rise of altcoins.
This logic is straightforward: before altcoin ETFs were launched, the majority of flows came from Bitcoin. The strength of Bitcoin was what pushed money into altcoins. ETFs allow investors to get direct exposure to specific altcoins. They create a direct channel of capital flow and could change the way that money moves across the market.
Grayscale’s decision to pull its HBAR ETF application is not surprising in this context, as it acts as an important bearish catalyst. It removes the institutional narrative that has been circulating around HBAR. The sentiment is also impacted by this move. When we consider Hedera’s institution positioning, it becomes more significant.
SoSoValue shows that HBAR is still experiencing relatively small institutional flows. Grayscale’s exit could slow down institutional momentum in this environment and increase pressure on HBAR for new buying support.
When was the right time? The timing couldn’t have possibly been worse.
The technical view is that the weakened sentiments, a slowing ETF movement, and weak flows by institutions are hitting simultaneously. This trend will continue. Hedera [HBAR] The market could be facing a deeper decline and enter into a capitulation phase.
HBAR’s set-up turns out to be risky
HBAR has recently dropped to support levels of $0.065.
Grayscale’s decision to remove HBAR as a component of its ETF is a negative catalyst. This is a significant headwind. For the moment, it seems that the negative news is overpowering any positives, suggesting further losses.
As you can see in the chart above, HBAR gained 2.5% intraday. However, it’s still too early to confirm a breakout, as HBAR must first clear a major resistance to move upward. Trading is a must for traders. A break above $0.07 would allow the asset to reach previous highs.
Key question: Will buyers show strong enough purchasing power to offset any sales pressure? Currently, HBAR’s setup It is more bullish to be bearish.
In this case, it is possible that the intraday 2.5% move will turn out to be faked, and the bears are likely to continue pushing the price downwards during the coming sessions to test the $0.0065 level. The bearish trend can resume this way and the price may enter into a surrender phase.
Summary
- HBAR is still under pressure, as Grayscale’s departure and the weak ETF flow continue to weigh down on sentiment.
- If HBAR fails to rise above $0.07, it will fall below $0.065 which could trigger further downside.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
