HBAR’s Price Plunge After Canary ETF Launch: What Went Wrong?
In recent months, the cryptocurrency community has witnessed Hedera’s native token, HBAR, take a sharp nosedive of 40% following the much-anticipated launch of the Canary HBAR ETF. While the ETF’s announcement initially spurred optimism and inflows from investors, the market performance post-launch tells a story of unmet expectations and speculative activity.
Understanding the “Buy the Rumor, Sell the News” Phenomenon
A common trend in asset markets, particularly in crypto, is the “buy the rumor, sell the news” effect — and this appears to have hit HBAR hard. The Canary ETF, which initially recorded nearly $30 million in cumulative inflows around its late-October launch, eventually saw enthusiasm fizzle. Data now shows cumulative inflows stagnating at just $875,000, with trading activity trending flat or reflecting outflows on most days.
The lackluster performance suggests that early investors entered the market to capitalize on the hype around the ETF launch but exited shortly after profits were realized. This profit-booking created a persistent selling pressure, preventing HBAR from maintaining key technical support levels.
Canary ETF: Symbolic Impact Without Substantial Gains
While the launch of the Canary ETF increased visibility for HBAR, it failed to trigger significant investor demand for spot purchases. The absence of notable follow-through volume led to sustained price weakness. Without strong institutional or whale-level inflows driving momentum, HBAR struggled to recover.
Technical indicators further highlight this weak sentiment. The Chaikin Money Flow (CMF), which measures capital inflow and outflow, has slipped below zero. Historically, negative CMF trends have accompanied bearish phases for HBAR, as large stakeholders reduce holdings, triggering rapid sell-offs.
Technical Levels to Watch
Currently, HBAR is stuck in a consolidation phase, oscillating between a resistance level at $0.131 and support at $0.113. If selling pressure intensifies, the price may break below its support level, potentially testing $0.104 or deeper at $0.096 as the next major downside targets.
On the flip side, recovery would require a clear reversal of outflows and broader improvements in market sentiment. Sustained buying pressure that pushes HBAR above $0.131 could pave the way for a rally to $0.150 or higher, effectively invalidating current bearish trends.
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Conclusion
The HBAR price drop following the Canary ETF launch reflects the challenges of translating symbolic milestones into tangible market gains. As it stands, HBAR’s recovery hinges on shifting capital flows and improving market confidence. Investors should closely monitor key support levels while considering the broader crypto market sentiment before making decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always consult with a financial professional before making investment decisions.
