HABR surpasses BCH to rise to position 18 after jumping 54% - Will it continue to increase?

HBAR has witnessed strong growth recently, increasing by 54% in the week, reaching its highest level in the past 4 months. This breakout has pushed HBAR's market capitalization to $10.5 billion, surpassing Bitcoin Cash, climbing to the 18th position, and drawing strong attention from investors. However, despite the strong demand for this altcoin, concerns have also been raised about the potential for taking profit in the short-term.

HBAR Flow Warns of Risks

The Chaikin Money Flow indicator (CMF) is currently indicating that the money flow into HBAR is very strong, reflecting an optimistic market sentiment. However, as the CMF approaches the threshold of 0.20, this signals that HBAR may be approaching overbought levels. If the momentum of this altcoin slows down, a price reversal could occur, triggering a correction.

With the continuation of the uptrend, the caution from investors becomes more important than ever. As the market begins to heat up, the possibility of price correction increases. If the CMF surpasses the 0.2 threshold, this could confirm that the bullish phase has ended, paving the way for take profit activities and posing risks of short-term price declines.

HBAR CMF | Source: TradingViewThe correlation between HBAR and Bitcoin is currently at 0.94, further reinforcing the view that HBAR may avoid significant corrections. Bitcoin is nearing the $120,000 mark, and if it continues to maintain its upward momentum, this altcoin will benefit from Bitcoin's strength. This not only boosts the overall market sentiment but also influences the behavior of investors, including HBAR.

This correlation protects HBAR from the risk of depreciation, even when the market shows signs of overbuying. The growth momentum of Bitcoin may sustain strength for HBAR, creating momentum to draw attention and investment into this altcoin.

The correlation between HBAR and Bitcoin | Source: TradingView## Will the price of HBAR continue to rise?

Currently, HBAR is trading near the $0.25 level, right at this important resistance level. The 9% increase in the past 24 hours has helped HBAR reach its highest point in 4 months, and if it breaks through this resistance level, this altcoin could definitely continue its growth momentum.

To maintain the upward trend, HBAR needs to hold the support level at $0.25. If this price level is sustained, it will confirm the continuation of the upward trend and could push HBAR to $0.267 in the near future. The strong continuation of Bitcoin will play a key role in helping HBAR break through this resistance level, due to market sentiment and the strong correlation between them.

HBAR 1-Day Price Chart | Source: TradingViewHowever, if HBAR cannot break through the $0.25 level or faces strong selling pressure, the price of this altcoin could adjust down to $0.22, or even lower, at $0.188. This would reflect a reversal in the current uptrend and dismiss the possibility of continued price increases in the short-term.

Lilly