Hedera price rises ahead of HBAR ETF launch: Sell the news?

Hedera price popped by over 20% on Tuesday as investors anticipated the start of the spot HBAR ETF in the United States. HBAR token rose to a high of $0.2190, its highest level since October 8. It has jumped by 110% from its lowest level this month.

HBAR ETF to launch today 

Hedera price rebounded as investors anticipated the launch of the Canary HBAR ETF.

This trading will start after Canary filed the 8A Filing. The listing was confirmed by Eleanor Terrett, a Fox Business journalist. It was also confirmed by Eric Balchunas, the Senior ETF analyst at Bloomberg, who noted that NASDAQ had posted the listing notices for the Hedera and Litecoin ETF.

2.4K Reply Copy link Hedera’s ETF will have a ticker symbol of HBR, while Litecoin’s fund will have a ticker symbol of LTCC.

Therefore, analysts believe that these funds will have substantial inflows from investors. For one, other crypto ETFs have already attracted substantial sums of money from investors.

Spot Bitcoin ETFs have had net inflows of over $62 billion since their inception in January last year. Similarly, spot Ethereum ETFs have had over $14.50 billion in inflows since their approval in July last year.

Other top crypto ETFs have done well in the past few months. For example, the REX-Osprey XRP ETF has accumulated over $106 million in assets since its launch last month. The REX-Osprey Solana ETF has over $400 million in assets.

Still, it is unclear whether Hedera will attract such assets as it has some major ecosystem challenges. Data compiled by DeFi Llama shows that the network has struggled to attract the biggest developers in key areas of the crypto industry like decentralized finance and real-world asset tokenization (RWA).

Hedera, despite its $10 billion market cap still has just 24 dApps in the DeFi industry. Some notable names like Aave and Uniswap have not deployed there but have opted to do so in newer platforms like Unichain, Hyperliquid, and Plasma.

More data by RWA shows that the network has no market share in the RWA industry, which has over $35 billion in assets. This industry is dominated by blockchain networks like Ethereum, ZKsync Era, Polygon, Avalanche, and Aptos. 

Therefore, these metrics means Hedera may struggle to generate substantial inflows from American investors. Instead, some of them may opt to invest in other utility ETFs like XRP and Solana.

Hedera price technical analysis 

The daily timeframe chart shows that the HBAR price bottomed at $0.0996 earlier this month as the crypto market crash escalated. It has now rebounded and more than doubled, and was trading at the important resistance level at $0.2200.

Hedera price has retested the descending trendline that connects the highest swings since July 27. It has moved above the 50-day Exponential Moving Average (EMA).

Also, the Relative Strength Index (RSI) and the MACD indicators have pointed upwards. The RSI has moved above the key point at 50, while the two lines of the MACD are nearing their zero line.

Therefore, the token will likely rally after the HBAR ETF launch. However, this could be a sell the news, which might have it resume to downtrend.

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