HBAR Surges 24% on Institutional Buying Spree, Faces Key Resistance at $0.23
Hedera's token, HBAR, experienced a significant price surge of 24% on October 2, driven by growing institutional interest and strategic partnerships, according to data from CD Analytics. The token's price reached as high as $0.23 before facing resistance at that level.
The sharp gains were fueled by heavy trading volume, with analysts attributing the momentum to a combination of factors, including Hedera's participation in digital currency discussions alongside major financial institutions such as SWIFT and Citigroup, as well as its involvement in Wyoming's stablecoin pilot program. "Hedera's growing institutional interest is a key driver of HBAR's price surge," said Oliver Knight, an analyst at CD Analytics. "The token's adoption by major players in the financial sector is a significant vote of confidence in its potential."
According to Knight, Hedera's partnerships and discussions with institutions are likely contributing to the SEC's review of a potential spot ETF approval for HBAR. The SEC's consideration of this proposal could further fuel upside in October, despite short-term weakness. "A spot ETF would provide institutional investors with a more accessible entry point into the market, which could lead to increased demand and higher prices," Knight explained.
The token's price surge was not without its challenges, however. Late-session volatility cut into momentum, leaving HBAR stuck just below the $0.23 mark. Analysts note that this resistance level has been a persistent challenge for the token, with strong selling pressure continuing to cap gains at this point.
Despite the short-term weakness, experts believe that Hedera's growing institutional interest and strategic partnerships will continue to drive adoption and price growth in the long term. "Hedera's participation in digital currency discussions and its involvement in Wyoming's stablecoin pilot program demonstrate its commitment to innovation and collaboration," said a spokesperson for Hedera. "We are confident that our efforts will ultimately lead to increased adoption and higher prices."
As of October 2, HBAR's price remains at $0.23, with analysts closely watching the token's performance as it navigates key resistance levels. The SEC's review of the potential spot ETF approval is expected to continue in the coming weeks, with a decision likely to have significant implications for the token's price and adoption.
In conclusion, Hedera's token, HBAR, has experienced a significant price surge driven by growing institutional interest and strategic partnerships. While short-term weakness may be present, experts believe that these factors will ultimately lead to increased adoption and higher prices in the long term.
This story was compiled from reports by CoinDesk and CoinDesk.
