Hedera (HBAR) is showing signs of a potential trend reversal as its price bounces strongly from the critical $0.10 high-time-frame support level, forming a double bottom pattern. This technical setup emerges alongside the strongest weekly ETF inflows for HBAR recorded in 2026, suggesting a confluence of technical and fundamental demand.
The price action shows HBAR defending the $0.102 support zone on multiple occasions, creating a structure resembling a "W" or double bottom reversal pattern. This pattern is considered bullish and often signals the end of a downtrend when confirmed. For confirmation, HBAR must reclaim the value area low (VAL) and, crucially, break above the neckline resistance near $0.135. A successful breakout could project a move of up to 31%, targeting the $0.176 zone.
A major obstacle has been the 50-day Exponential Moving Average (EMA), which has stifled previous rally attempts. The current setup sees the W pattern's neckline converging with this key moving average resistance near $0.127-$0.135. A clean break above this level would be a significant bullish signal, turning prior resistance into support.
Fundamental demand appears to be strengthening. For the week ending January 16, 2026, HBAR ETF net inflows reached approximately $1.46 million, marking the highest weekly total of the year. This institutional-style demand is being mirrored in the spot market, where net spot outflows surged over 150% from roughly $882,000 to $2.22 million between January 18 and 19, indicating tokens are being pulled off exchanges—a sign of accumulation rather than preparation for selling.
Momentum indicators add to the cautiously optimistic picture. A bullish divergence is forming on the Relative Strength Index (RSI), where price tests a lower low while the RSI prepares to print a higher low, suggesting weakening selling pressure. This divergence remains valid as long as HBAR holds above the $0.102 support.
The coming days are critical. The current ETF flow week closes on January 23; sustained positive inflows would confirm ongoing institutional demand. On the chart, all eyes are on the $0.127-$0.135 zone. A volume-backed reclaim of this area would confirm the double bottom reversal and open the path for a sustained rally. Failure to break above the 50-day EMA, however, could see the price remain range-bound and vulnerable to further downside tests.
