The Canary ETF performance has disappointed investors after recording a 40% drop in the price of HBAR. Aaryamann Shrivastava reported that the lack of sustained institutional interest has left the asset in a vulnerable position. The news confirms a sell-off scenario following the initial excitement over the launch of the financial product.
On the other hand, the exchange-traded fund reached a peak of $30 million in cumulative inflows during its debut. However, recent data shows that net flows have stalled at levels near zero currently. In this way, speculative excitement quickly disappeared, leaving retail holders with significant losses. The asset went from trading at $0.200 to being near $0.117. Demand from institutional investors failed to materialize as initially expected by most analysts.
Likewise, the Chaikin Money Flow indicator shows a worrying trend by sliding below the zero line. Therefore, capital outflows are starting to dominate over inflows in the market right now. This behavior suggests that whale and institutional interest remains in a fragile state and cautious. Historically, these shifts in money flow coincide with periods of prolonged price weakness. Persistent selling pressure limits the recovery efforts of the price in the short term.
Mismatch between expectations and real institutional demand
Furthermore, the impact of the fund was more symbolic than driven by a real capital injection. Although the approval improved the visibility of the project, it failed to unlock new sources of massive liquidity. In this way, the episode resembles a sell-the-news event typical of the crypto sector. Without strong follow-through volume, the price failed to maintain key technical support levels. Improved visibility did not translate into direct purchases in a sustained manner by large global funds.
It is also observed that HBAR has entered consolidation phases after each sharp downward movement lately. Currently, the asset is oscillating between a resistance of $0.131 and a critical support of $0.113. Therefore, a breakdown below support would expose $0.104 as the next target. If selling pressure intensifies, the price could seek even deeper support levels very soon. Market indecision reflects a lack of positive catalysts for Hedera’s technology at this moment.
Can Hedera recover the levels prior to the technical correction?
Nonetheless, a bullish alternative depends exclusively on a radical shift in global capital flows. If outflows stop and overall market sentiment improves, the price could stabilize quite soon. Likewise, a decisive move above the $0.131 level would strengthen rebound prospects. Surpassing the $0.150 barrier would invalidate the current bearish thesis and restore market confidence. Recovery requires a significant increase in buying volume to be considered legitimate and lasting.
To conclude, Hedera’s current situation highlights the risks of relying on speculative narratives without institutional backing. Investors are now closely watching the behavior of the $0.113 support to define their strategies. Therefore, the immediate future will depend on the ability to attract real and organic capital. In this way, the market will determine if the current value is attractive for new long positions. The focus is on the next flow reports from the Canary financial product.
