HBAR Price Hits 4-Month High, Surpasses Bitcoin Cash After 27% Surge

HBAR is experiencing strong momentum recently, increasing 27% in the past 24 hours to reach a 4-month high.

This increase has pushed the market capital of the altcoin to 10.74 billion USD, surpassing Bitcoin Cash and attracting investor attention. This price surge shows strong demand but also raises concerns about potential profit-taking.

Inflow of funds into HBAR signals danger

The Chaikin Money Flow (CMF) indicator has shown strong funds flowing into HBAR, signaling a positive market sentiment. However, as CMF approaches the 0.20 threshold, this suggests the altcoin may be in an overbought state. This could lead to a price reversal if HBAR's rally cools down, causing a correction.

As HBAR continues to rise, investor caution becomes more important. The likelihood of a price drop increases, as markets typically adjust when approaching an overheated state. If CMF exceeds the 0.20 mark, this could confirm that the rally has ended, triggering profit-taking and a potential short-term decline.

HBAR's correlation with Bitcoin, currently at a strong 0.94, supports the idea that HBAR might avoid a significant correction. Bitcoin is approaching 120,000 USD, moving towards a new All-Time-High (ATH). As Bitcoin strengthens, it pulls along other cryptocurrencies, including HBAR, due to market sentiment and collective investor behavior.

This correlation provides protection for HBAR from potential price drops despite being in an overbought state. Bitcoin's price increase could help maintain HBAR's current momentum, encouraging continued interest and investment in this altcoin.

Can HBAR's price continue to rise?

At the time of writing, HBAR is trading at 0.250 USD, right at the important resistance level of 0.250 USD. The 27% increase in the past 24 hours has pushed HBAR to a 4-month high, and this altcoin could continue its upward trend if it breaks through this resistance.

To maintain the current price momentum, HBAR needs to hold 0.250 USD as support. This would confirm recent price action and provide a path to 0.267 USD. Bitcoin's continued strength is likely to play a crucial role in pushing HBAR beyond this important level.

However, if HBAR fails to break through 0.250 USD or faces strong selling pressure, the altcoin could drop to 0.220 USD, and even lower to 0.188 USD. This would invalidate the price increase argument and indicate a reversal in the altcoin's recent rally.