HBAR Price Under Pressure Amid Collapsing ETF Demand
In the volatile world of cryptocurrency trading, a once-promising exchange-traded fund (ETF) for Hedera’s HBAR token has seen its initial hype fade rapidly, mirroring the broader market’s cautious turn. As investors pull back from altcoins amid ongoing market weakness, HBAR’s price struggles to find footing, highlighting the fragility of speculative enthusiasm in the sector.
Hedera's Market Challenges in a Weakening Crypto Landscape
Hedera, known for its enterprise-focused blockchain and partnerships with regulated entities, entered 2025 with optimism surrounding spot crypto ETFs. Following the success of Bitcoin and Ethereum ETFs in 2024, altcoins like HBAR were positioned as logical next steps due to their utility in enterprise applications and compliance narratives. However, recent data reveals a stark contrast, with ETF inflows drying up and technical indicators signaling prolonged downside risks.
ETF Inflows Hit Zero, Eroding Investor Confidence
The Canary HBAR ETF, launched less than two months ago, recorded zero inflows on December 22, underscoring a sharp decline in demand from both crypto-native traders and traditional finance participants. This lack of interest amplifies the token’s vulnerability, as institutional capital—once seen as a key driver—fails to materialize.
- Historical Context: Spot ETFs for major cryptocurrencies dominated narratives in 2024, drawing billions in investments and stabilizing prices during volatility. HBAR’s ETF was anticipated to capitalize on Hedera’s strengths, including its hashgraph consensus mechanism and collaborations with global firms, but the zero-inflow day suggests earlier expectations were overly speculative.
- Market Implications: Without ETF support, HBAR lacks a buffer against selling pressure. This development reinforces a broader trend where altcoin ETFs struggle to attract sustained capital, potentially delaying mainstream adoption for enterprise blockchains.
- Statistics: On-balance volume (OBV), a key indicator of buying versus selling conviction, has dropped to a nine-month low. Declining OBV confirms that down days outpace up days in volume, indicating structural selling rather than short-term corrections.
The absence of inflows not only weakens sentiment but also highlights risks in tying token performance to ETF launches without underlying demand.
Technical Analysis Points to Extended Downtrend
HBAR currently trades around $0.111, entrenched in a downtrend spanning over six weeks and unable to breach the $0.120 resistance level. Multiple recovery attempts have failed, reflecting investor caution amid the crypto market’s deepening weakness.
- Support and Resistance Levels: A breakdown below the $0.110 support could accelerate losses toward $0.099, extending bearish momentum and increasing crash risks below $0.10. Conversely, holding above $0.110 might enable sideways consolidation, gradually easing downside pressures without immediate upside breakthroughs.
- Volume Trends: Persistent distribution, as shown by falling OBV, suggests sell-side dominance. Reversals would require stabilizing volume or positive catalysts, which remain elusive in the current environment.
- Broader Trends: HBAR’s performance aligns with altcoin struggles, where Bitcoin’s influence amplifies corrections. Over the past weeks, trading sessions have favored sellers, with volume on declines exceeding gains, making sustained recoveries challenging.
These technical signals indicate that HBAR’s price trajectory is tied to resolving ETF demand issues and broader market recovery. As the crypto market navigates this period of consolidation, the faltering HBAR ETF serves as a cautionary tale for altcoin investors. What could this mean for the future of enterprise blockchains like Hedera—will renewed institutional interest emerge, or will prolonged weakness reshape ETF strategies in 2026?