Hedera loses ground while oversold signals limit further downside

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Hedera drops 7.68% today to $0.07

Highlights

Hedera engaged with US regulators at the CFTC Frontier Forum on AI trading, providing visibility into digital asset policy and compliance discussions.
The Canary HBAR ETF saw renewed inflows, amassing $60.38 million in net assets and $113.65 million in cumulative net inflows, equivalent to 1.79% of HBAR market cap.
HBAR trades below key moving averages with all major indicators signaling strong downside momentum and a projected short-term range of $0.0684 to $0.0716.

Regulatory engagement and ETF inflows as institutional interest counters selloff

Hedera participated in the inaugural CFTC Frontier Forum on AI trading, with its chief policy officer, Nilmini Rubin, serving as one of eight panelists on October 28, according to Techbullion. This regulatory engagement provides visibility and fosters dialogue around digital asset policy, potentially influencing long-term compliance and market positioning. Additionally, the Canary HBAR ETF reported renewed inflows after a period of inactivity, totaling $60.38 million in net assets and cumulative net inflows of $113.65 million, or roughly 1.79% of HBAR's market capitalization—an indicator of institutional allocation that may enhance HBAR liquidity, though price action has remained under broader selling pressure.

Technical signals reinforce downside momentum amid persistent resistance levels

On the hourly chart, HBAR/USD remains below the MA-20 at $0.0738 and MA-50 at $0.0751. On the daily timeframe, the price is also trading under the MA-200 at $0.0814, with the Ichimoku Kijun level at $0.0745 acting as immediate resistance. MACD and RSI both produce sell signals, with the latest RSI reading at 37.28. Stochastic RSI and CCI are currently in oversold territory, indicating heavy downside momentum. Bull/Bear Power confirms intraday seller dominance, and the Awesome Oscillator also supports a downtrend bias, with all signals currently aligned with ongoing downside pressure.

High downside risk as consolidation range narrows under weak momentum

Over the next 2 to 3 days, HBAR is expected to consolidate within the $0.0684 to $0.0716 range, reflecting typical volatility for the current environment. The probability of further downside movement is rated very high, with upward rebounds seen as unlikely under present momentum conditions. Should the price break above the $0.0745 resistance, a short-term recovery could materialize. Conversely, a move below $0.0684 would indicate further weakness and create the risk of new local lows.

Anton Kharitonov, expert at Traders Union, sees persistent technical weakness in HBAR despite recent institutional inflows and high-level regulatory engagement. He notes that continued selling pressure keeps the asset under its key averages and technical indicators remain firmly bearish. While ETF inflows and the CFTC forum participation signal growing interest, these factors have yet to offset negative market sentiment. "As long as HBAR remains capped below $0.0745 and momentum signals stay bearish, I remain cautious and see limited short-term recovery potential."

Earlier, analysts noted that Hedera faced persistent downside pressure despite improvements in network activity and ecosystem development. The current setup reinforces this bearish outlook, with technical indicators and trading patterns signaling that further downside risk prevails unless the price can reclaim the $0.0745 resistance in the days ahead.

Source of Data: HBAR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.