Hedera Gears for a Potential Breakout in 2026
Hedera (HBAR) is making waves in the cryptocurrency market with the potential for a 31% price surge. After months of stagnant movement and repeated failed recoveries, the convergence of strong ETF demand and encouraging price action is setting the stage for an exciting breakout.
The W Pattern: A Game Changer?
On the daily chart, Hedera is forming what traders refer to as a “W pattern” or double bottom—a clear indicator that sellers are losing momentum. This formation arises when the price consistently finds support at the same level and bounces higher. For Hedera, the $0.102 price level has repeatedly drawn buyers, acting as a foundation for potential upside momentum.
If HBAR breaks past its “neckline” resistance at $0.135, this classic pattern suggests a possible 31% rise, with targets landing near $0.176. However, the challenge lies in clearing the critical 50-day Exponential Moving Average (EMA)—a level that has thwarted previous rallies.
ETF Inflows Signal New Interest
January 2026 has brought record institutional interest, with Hedera seeing its strongest ETF inflows this year, totaling $1.46 million for the week ending January 16. ETF inflows often signify capital allocation from large institutions and signify a more stable interest in the asset compared to speculative retail trades. Simultaneously, spot market activity has mirrored this strength, with net outflows of $2.22 million recorded between January 18 and 19. This indicates that investors are pulling their assets off exchanges, a bullish sign suggesting accumulation rather than selling.
What Needs to Happen Next?
Momentum indicators like the Relative Strength Index (RSI) add weight to the bullish argument. Despite the current dip in Hedera’s price, RSI divergence suggests weakening selling pressure, provided prices remain above the pivotal $0.102 level. A breakthrough of $0.135 will not only validate the W pattern but also signal the recovery of the 50-day EMA, transforming short-lived rallies into a sustained trend reversal.
Traders and investors should keep an eye on the close of the ETF reporting week on January 23. If ETF inflows continue positively into this date, it may signify continued institutional appetite. Otherwise, caution may prevail, leaving investors waiting for the next major price movement.
Looking to Trade or Invest in Hedera?
For those already in the crypto space or newcomers looking to explore Hedera, timing is critical. Complementing Hedera’s strong fundamentals, consider integrating cutting-edge tech tools for tracking crypto trends. Products like Coinbase offer seamless platforms with secure storage and advanced analytics to monitor investments effectively.
As the crypto world evolves, Hedera’s current setup holds promise. With the W pattern aligning with inflows and support levels, this could be a pivotal moment for the token. Remember, volatility remains a hallmark of cryptocurrencies, so conduct due diligence and invest responsibly.
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