Hedera Trading Volume Soars 125% as Price Reaches Yearly Low

Hedera (HBAR) experienced a significant 125% surge in trading volume, although its price has recently hit a yearly low, declining by 10% over the past 24 hours. This dramatic shift comes amid a broader downturn in the cryptocurrency market, yet the increase in trading volume has caught the attention of many. The surge in volume is particularly linked to the news that Nasdaq has filed with the US SEC to list the Canary HBAR ETF, which could have significant implications for the institutional adoption of Hedera.

If the SEC approves the ETF, it would provide institutional investors with a more straightforward way to invest in Hedera, potentially opening up significant capital inflows to the network. The news of the ETF filing has undoubtedly raised optimism among investors, contributing to the spike in trading activity.

Despite this, Hedera’s price has been on a bearish trajectory since hitting a cycle high of $0.40 in January. The token has now dropped over 50% from its peak, currently hovering around $0.20. The market sentiment around Hedera appears to be mixed. The Relative Strength Index (RSI) sits at 48.91, indicating neutral momentum, while the Moving Average Convergence Divergence (MACD) shows a bearish crossover, signaling that downward pressure may continue in the short term. The nearest support level for HBAR is around $0.12, with resistance found at approximately $0.34.

Despite the bearish price action, Hedera’s long-term prospects may remain promising. The HBAR Foundation has been actively strengthening its institutional positioning, notably through its investment in Archax’s tokenized shares of Fidelity International’s USD Money Market Fund. Archax, the first FCA-regulated digital asset exchange, has utilized the Hedera network to tokenize the MMF. This development suggests that Hedera is increasingly becoming a prominent platform for institutional tokenization, which could drive future growth and adoption.

In summary, while Hedera’s price is currently facing downward pressure, the recent spike in trading volume and institutional developments indicate that it may still have a strong potential for future growth, especially if the Canary HBAR ETF gets SEC approval. Investors and market participants will be closely monitoring these developments, as they could significantly impact the token’s price and long-term outlook.