Hedera (HBAR) Surges 26% Weekly Amid ETF Buzz, But Sustainability Remains in Question

Hedera (HBAR) has captured investor attention after a notable 26% weekly rally, driving renewed optimism across the crypto market. The sharp price increase has boosted portfolio values and stirred bullish sentiment among traders. However, on-chain data and technical indicators reveal warning signs that the momentum may not be as organic—or sustainable—as it appears.

The surge in HBAR’s weighted sentiment suggests a rapid rise in investor optimism, closely tied to the launch of Canary Capital’s spot HBAR exchange-traded fund (ETF) earlier this week. The ETF debut ignited social buzz and amplified discussions around Hedera, pushing expectations for short-term gains. Yet, historical trends show that sudden spikes in enthusiasm often precede corrections, as traders rush to capitalize on quick profits.

While sentiment appears bullish, technical indicators tell a different story. The Chaikin Money Flow (CMF) indicator—used to track capital inflows—shows little evidence of new money entering the market. This lack of strong buying pressure raises concerns about the sustainability of the uptrend. Low inflows paired with high trading activity often signal an overheated market, increasing the likelihood of a pullback as liquidity tightens.

At present, HBAR trades around $0.2048, testing resistance near $0.212. If investor enthusiasm fades and profit-taking begins, the token could slip below $0.200, potentially falling toward $0.178. Conversely, if inflows rise following the ETF’s introduction, HBAR may reclaim $0.217 and aim for $0.23, signaling continued bullish strength.

Ultimately, while Hedera’s rally has reignited short-term optimism, sustaining this momentum will require genuine capital inflows and steady investor confidence—without which the current uptrend could quickly lose steam.