Hedera reclaims key support as stablecoin supply rises — January rally possible
Hedera (HBAR) has rebounded after reclaiming the $0.123 support level, rising roughly 18% over the past week and about 21% month-to-date. On-chain fundamentals strengthened: Hedera’s stablecoin supply climbed from $74.5M in mid-December to $121.4M, boosting on-chain liquidity. Technicals show multiple bullish signals — price near a breakout of a multi-month descending parallel channel, bullish MACD and RSI divergence, and a double-bottom breakout on the 4-hour chart. Short-term upside target is $0.160 (~28% above current levels), with a further extension toward the October high of $0.228 if momentum sustains. Broader market recovery (Bitcoin > $90k and the Fear & Greed Index moving toward neutral) supports the move, but institutional interest remains muted: the spot HBAR ETF recorded only three inflow days in December totaling ~$3.4M, about one-tenth of the prior month’s inflows. Traders should weigh bullish technicals and rising on-chain liquidity against limited ETF/institutional demand; risk management is advised around the descending channel resistance and the $0.160–$0.228 zones.
Bullish
The news combines improving on-chain fundamentals and converging bullish technical signals, which is typically positive for price action. Stablecoin supply on Hedera rose from $74.5M to $121.4M, increasing on-chain liquidity and potential buy-side power. Chart patterns show a reclaimed $0.123 support, a potential breakout from a descending parallel channel, bullish MACD/RSI divergence, and a 4-hour double bottom breakout — all short-term bullish indicators. Broader market improvement (Bitcoin > $90k, Fear & Greed back to neutral) adds macro tailwinds. However, institutional demand via the spot HBAR ETF is weak (only ~$3.4M inflows across three days in December), which tempers conviction for a sustained, large-cap rally. For traders: expect a higher-probability short-term bullish move toward $0.160 and, if momentum and volume confirm, toward $0.228. Use stops under $0.123 or the lower trendline of the channel, monitor volume for breakout confirmation, and be cautious of fading ETF/institutional flows that could limit longer-term upside.