HBAR has witnessed strong growth recently, rising 54% in the week, reaching its highest level in 4 months. This breakthrough has pushed HBAR's market capitalization up to $10.5 billion, surpassing Bitcoin Cash, climbing to the 18th position and attracting strong attention from investors. However, despite the strong demand for this altcoin, concerns about short-term profit-taking have also arisen.
HBAR flow warns of risk
The Chaikin Money Flow (CMF) indicator currently indicates that the inflow of money into HBAR is very strong, reflecting an optimistic market sentiment. However, as the CMF approaches the 0.20 threshold, this signals that HBAR may be approaching an overbought level. If the upward momentum of this altcoin stalls, a price reversal could occur, triggering a correction.
With the continuation of the upward trend, caution from investors becomes more important than ever. As the market begins to heat up, the potential for price corrections increases. If the CMF surpasses the 0.2 threshold, this could confirm that the bullish phase has ended, paving the way for profit-taking and posing the risk of short-term price declines.
The correlation between HBAR and Bitcoin currently stands at 0.94, further reinforcing the view that HBAR may avoid significant corrections. Bitcoin is approaching the $120,000 mark, and if it continues to maintain its upward momentum, this altcoin will benefit from Bitcoin's strength. This not only boosts overall market sentiment but also affects investor behavior, including that of HBAR.
This correlation protects HBAR from the risk of price declines, even when the market shows signs of being overbought. Bitcoin's growth could sustain strength for HBAR, creating momentum to attract more interest and investment into this altcoin.
Can HBAR's price continue to rise?
Currently, HBAR is trading near the $0.25 level, right at this important resistance threshold. A 9% increase in the past 24 hours has helped HBAR reach its highest level in 4 months, and if it surpasses this resistance, this altcoin could very well continue its growth.
To maintain the upward trend, HBAR needs to hold the support level at $0.25. If this price level is maintained, it would confirm the continuation of the upward trend and could push HBAR to $0.267 in the near future. The strong continuation of Bitcoin will play a key role in helping HBAR break through this resistance level, thanks to market sentiment and the strong correlation between them.
However, if HBAR cannot surpass the $0.25 level or faces strong selling pressure, the price of this altcoin may adjust down to $0.22, or even lower, at $0.188. This would reflect a reversal in the current upward trend and negate the possibility of continued price increases in the short term.
