Is institutional conviction enough for an altcoin during a risk-off market? Right now, this is the key question surrounding Hedera.
From a technical lens, $HBAR remains bearish after breaking below the key $0.07 support level, putting July’s $0.065 low as the next major level to watch. If that support fails, $HBAR could move closer to its post-election price range, when it was trading around $0.04.
However, institutional positioning seems to be preventing that scenario from playing out.
As the chart below shows, $HBAR ended July with over $3 million in net ETF inflows, marking its strongest monthly inflow since May. This is notable because $HBAR still managed to limit downside despite closing the month in the red.
Notably, when compared with Solana, a key divergence starts to appear.
Despite SOL attracting strong institutional demand with $14 million in net ETF inflows in July, the token still ended the month down over 1.7%, underperforming $HBAR’s 0.94% decline.
In other words, despite Solana seeing more than 4x higher institutional inflows than $HBAR, the price action has not reflected that strength.
For $HBAR, this could be a strong bullish signal. The broader market remains in a risk-off phase, with Bitcoin still struggling below the $65k resistance level.
However, if altcoin rotation returns, $HBAR could benefit from the momentum built during July, when the $ETH/$BTC pair closed the month up 10.5%.
The key question now is whether Hedera [$HBAR] can capitalize on this shift.
$HBAR tests whether institutional demand matters
The altcoin is entering a high-stakes setup after breaking below the $0.07 support level.
From a technical lens, $HBAR’s consolidation around this range since mid-June suggests that institutional flows have helped absorb selling pressure. However, the bigger question remains: Will this support be enough, especially as $HBAR’s ETF flows have turned net zero so far in August?
Interestingly, ETF demand has not translated into a broader FOMO-driven market.
As the chart below shows, the $HBAR/$BTC ratio started in August down 3%, extending two months of consistent weakness, with the ratio now down 20% over the past three months. This came despite $ETH/$BTC gaining 10% in July.
In short, rotational flows into $HBAR are still struggling to pick up.
This suggests that institutional positioning alone has not been enough to trigger broader momentum across the altcoin.
Both $HBAR and the $HBAR/$BTC ratio ended July in the red, and with a similar setup developing again in August, the breakdown below $0.07 looks less like a temporary move and more like a sign of continued weakness.
Instead, the altcoin appears to be entering a broader bearish phase, with the $0.065 support level now becoming the key area to watch. A break below this level could accelerate downside pressure and open the door for a deeper correction.
Final Summary
- $HBAR’s ETF inflows have helped support the price, but weak momentum shows that institutional demand alone may not be enough.
- $HBAR is now testing key support at $0.065, and a breakdown could lead to further downside.