Hedera (HBAR) has demonstrated formidable strength in the past 24 hours, experiencing a significant 27% price surge that has propelled it to a new 4-month high. This robust rally has elevated HBAR's market capitalization to an impressive $10.74 billion, capturing widespread investor attention and even momentarily surpassing Bitcoin Cash in market value. The strong demand driving this upward movement is evident, though it also prompts cautionary discussions about potential profit-taking.
Technical Indicators Signal Caution Amid Inflows
Analysis of the Chaikin Money Flow (CMF) indicator reveals sharp inflows into HBAR, a clear sign of positive market sentiment and accumulation. However, as the CMF approaches the 0.20 threshold, it signals that HBAR may be nearing overbought conditions. Should the rally begin to cool, this could trigger a price reversal and a subsequent pullback. As HBAR continues its ascent, investor prudence becomes increasingly vital, given that markets often correct when they reach overheated levels. A confirmed cross of the CMF above the 0.20 mark could indicate that the current bullish run has reached its peak, potentially leading to increased profit-taking and a short-term decline.
Bitcoin Correlation Offers Protection
Despite the warnings from technical indicators, HBAR's strong correlation with Bitcoin (BTC), currently sitting at an impressive 0.94, provides a significant buffer against a sharp correction. With Bitcoin nearing the crucial $120,000 mark and approaching a new all-time high, its strengthening position typically uplifts the broader cryptocurrency market, including altcoins like HBAR. This shared market sentiment and investor behavior mean that Bitcoin's continued ascent could help sustain HBAR’s current momentum, fostering ongoing interest and investment, even in potentially overbought conditions.
HBAR's Price Trajectory: Key Levels to Watch
As of the time of writing, HBAR is trading at $0.250, directly confronting a key resistance level. The 27% surge has undeniably positioned HBAR for further upward movement if it successfully breaches this resistance. To maintain its current bullish trajectory, HBAR must firmly establish the $0.250 level as strong support. A successful hold above this mark would confirm the recent price action and could pave the way for HBAR to target $0.267. Bitcoin’s sustained strength is anticipated to be a crucial factor in helping HBAR overcome this critical resistance.
Conversely, if HBAR fails to breach the $0.250 level or faces significant selling pressure, the altcoin could experience a retracement, potentially falling back to $0.220, and in a more bearish scenario, even lower to $0.188. Such a decline would invalidate the immediate bullish thesis and signal a reversal of its recent impressive surge.
July 2025, Cryptoniteuae