What Does HBAR's Declining Institutional Holdings Mean for Its Price in 2025?

Institutional holdings of HBAR decline by 55% as smart money index drops to 1.108

The cryptocurrency market has witnessed a significant shift in investor sentiment towards HBAR, the native token of the Hedera network. Recent data reveals a sharp decline in institutional holdings, with a 55% decrease observed in 2025. This substantial reduction is accompanied by a noteworthy drop in the Smart Money Index (SMI) to 1.108, indicating a retreat of experienced investors from the asset.

This downward trend is further reflected in HBAR’s price performance:

The declining institutional interest and SMI suggest a weakening confidence in HBAR’s short-term prospects. This sentiment is mirrored in the token’s social dominance, which has fallen by 55% over the past month. Historically, spikes in social dominance have triggered rallies, but the current fading discussion often results in lower trading volumes and sluggish recovery.

Despite these bearish indicators, it’s crucial to note that HBAR still maintains a strong year-on-year performance, with a remarkable 253.25% increase. This long-term growth highlights the volatility and cyclical nature of cryptocurrency markets, where short-term setbacks can coexist with overall positive trajectories.

Large orders see net inflow of $328,700 while medium orders experience net outflow of $210,100

The recent market activity for HBAR in 2025 has revealed an intriguing trend in order flow dynamics. A closer examination of the data shows a significant divergence between large and medium-sized orders:

This stark contrast indicates a clear preference among investors for larger position sizes in HBAR. The substantial net inflow of $328,700 for large orders suggests that institutional investors or high-net-worth individuals are accumulating HBAR, potentially signaling confidence in its long-term prospects. Conversely, the net outflow of $210,100 for medium orders could imply profit-taking or portfolio rebalancing among mid-sized traders. This disparity in order flow patterns may be attributed to differing investment strategies and risk appetites across various market participants. The positive sentiment among large-scale investors, as evidenced by the significant inflow, could potentially serve as a bullish indicator for HBAR’s future price action. However, it’s crucial to consider this data point within the broader context of market conditions and fundamental factors affecting HBAR’s ecosystem.

HBAR price falls 5% from 20-day high of $0.2548 to $0.2357 amid reduced holdings

HBAR, the native cryptocurrency of the Hedera public network, has experienced a significant price drop of 5% from its 20-day high. This decline comes amid reduced holdings and bearish market sentiment. The price movement can be illustrated in the following table:

This downward trend aligns with broader market indicators, as the HBAR long/short ratio continues to fall, signaling that traders are increasingly betting against the token. The Money Flow Index (MFI) has also been trending downward slowly since Sunday, highlighting a slowdown in token accumulation across the market.

The price decline coincides with heavy institutional selling pressure observed over recent trading periods. For instance, during a recent 24-hour window, HBAR prices fluctuated within a volatile 6% range between $0.21 and $0.22. Notably, significant institutional liquidation occurred during specific time windows, with corporate trading volume spiking to over 12.80 million and 16.90 million respectively.

Despite this short-term bearish trend, it’s important to note that HBAR has shown resilience in the past. The cryptocurrency’s price has increased by 253.25% over the past year, demonstrating its potential for long-term growth. However, investors should remain cautious and monitor market conditions closely, as the current bearish signals may indicate further downside risk in the near term.