Hedera’s native cryptocurrency, HBAR, recently experienced its first major spot inflows in over ten days. The $2.46 million influx into the market has managed to boost the price of HBAR by 2% in the last 24 hours, aligning with broader positive trends across the crypto market. However, while this fresh capital suggests renewed interest in the asset, other indicators suggest that the rally may be short-lived and that bearish forces may soon regain control.

Spot Inflows Indicate Short-Term Price Movement

Spot inflows refer to fresh capital entering the market by purchasing the asset directly. In this case, the $2.46 million entering Hedera’s market represents a positive sign of investor interest, especially following a period of relative stagnation in HBAR’s price action. This increase in buying activity is seen as a potential trigger for short-term price movements, often acting as a catalyst for modest gains in the market.

However, despite this uptick in HBAR’s price, there are growing concerns about the sustainability of the rally. Spot inflows, while a positive sign, do not always lead to long-lasting price growth, particularly when other technical indicators are signaling weakness in the momentum behind the asset.

Technical Indicators Highlight Bearish Pressure

Though HBAR’s price has been buoyed by the spot inflows, technical indicators continue to show signs of weakening bullish momentum. The Awesome Oscillator (AO), a key tool used to gauge market momentum, has been showing red histogram bars for HBAR. When the AO turns red, it typically indicates a loss of bullish pressure and growing bearish momentum, signaling a potential price reversal in the near future.

Further reinforcing the bearish outlook is the behavior of HBAR’s Moving Average Convergence Divergence (MACD) indicator. The MACD line, which helps identify momentum shifts and market trends, is currently positioned below the signal line. This suggests that selling activity is outweighing buying, contributing to negative momentum for the asset. Given these signals, there is a clear concern that HBAR may struggle to sustain its recent gains.

Price Prediction: Will HBAR Maintain Its Gains?

If the bearish pressure continues to build, HBAR could experience a correction that may bring its price down toward the $0.26 support level. A further breakdown below this threshold could open the door to more significant losses, possibly pushing the price as low as $0.24.

On the flip side, if the bulls manage to regain control and reverse the negative sentiment, HBAR may be able to break through its immediate resistance at $0.33. A sustained move above this level could pave the way for HBAR to test the $0.40 mark, providing hope for a continued bullish rally. The key factor will be whether the bulls can push through the resistance levels and maintain upward momentum.

Market Sentiment and the Future of HBAR

While the $2.46 million spot inflows are an encouraging sign of investor interest, HBAR faces significant challenges in maintaining its recent gains. The broader cryptocurrency market recovery may be providing some tailwinds, but the technical indicators suggest that a sustained rally for HBAR is uncertain. Traders and investors should keep an eye on key price levels, including the support at $0.26 and the resistance at $0.33, to gauge where HBAR is likely headed next.

For now, the outlook for HBAR remains cautious. If the asset can break through resistance and overcome the bearish signals, there may be potential for further growth. However, without a significant shift in momentum, HBAR may continue to face pressure in the coming days.