Despite a notable 10% decline from its five-month peak, Hedera (HBAR) is displaying indicators of underlying strength that may pave the way for an unexpected rebound. While retail investors are predominantly betting against the asset, recent data indicates that larger investors, known as whales, are gradually increasing their holdings. This behavior suggests that the recent price drop may be more of a market shakeout rather than a significant downturn.
### Whales Accumulate, Netflows Validate
Although HBAR’s price has retreated from its $0.30 high, major investors see this as a chance to buy at a lower price. Since July 20, the number of wallets containing at least 1 million HBAR has surged nearly 5%, with those holding 10 million or more rising by approximately 4.5%. Such activity from significant holders typically signifies a phase of accumulation instead of panic selling.
### HBAR Whales Accumulating: Hedera Watch
What substantiates this trend? The netflow data from spot exchanges offers valuable insights. The recent trends indicate that HBAR has experienced more outflows from exchanges in July, signaling a growing tendency for accumulation. This metric reveals the volume of HBAR entering or exiting exchanges; a predominant outflow suggests that holders are pulling their tokens off the market, making them less likely to sell. In essence, whales are purchasing and transferring coins away from exchanges, which often creates favorable conditions for price increases.
### OBV Momentum Aligns With Whale Buying
The On-Balance Volume (OBV) metric further corroborates this trend. OBV assesses cumulative volume flow to determine whether buying or selling activities dominate. An upward trend in OBV during price increases indicates genuine buying interest. For HBAR, the OBV has been on the rise since early July and has remained stable even after the recent price dip. This stability is crucial; the whale accumulation and netflow trends would lose significance without corresponding volume support. However, the OBV reinforces the narrative that demand remains robust behind the scenes, suggesting that the current dip may be losing momentum.
### HBAR Price Holds Key Support, But Needs a Trigger
Currently, HBAR is maintaining its position just above the 0.236 Fibonacci retracement level at $0.26, a critical price point it needs to defend. If momentum returns, a breakout above the $0.30 mark could be feasible, especially with increased whale activity and outflows. Nonetheless, the $0.26 level is vital support; falling below this threshold would weaken the bullish outlook.
### HBAR Price Analysis
While the previous analysis captures the broader price movement from $0.12 to $0.30, a closer look reveals specific levels that HBAR must surpass to approach its five-month high. According to the shorter-term analysis, breaking through $0.28 is essential for HBAR. The $0.26 level continues to serve as strong support, aligning with trends observed in the larger price movement. All indicators suggest a robust underlying strength; whales are accumulating, supply is decreasing, and the OBV remains intact. However, the price has yet to reflect this strength, indicating that the market may be waiting for a catalyst, potentially a change in retail investor sentiment.
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