HBAR Dips 8%: What’s Next for Traders?
The cryptocurrency market experienced turbulence yet again as HBAR, the native token of Hedera, saw a significant 8% dip, trading at $0.134. This move comes amid a broader market drop of approximately 6%, putting investors on edge about what lies ahead. If you’ve been following Hedera, you know the past three months haven’t been great, with HBAR losing nearly 50% of its value. In this article, we analyze whether this downtrend will persist or if there’s still hope for a bullish recovery.
Key Indicators: Support Levels and Volume Weakness
HBAR currently sits at a critical support level of $0.134. Analysts suggest that breaching this level could open the door to more substantial losses, with $0.129 being the next target. A loss of $0.129 could place HBAR on a continued bearish trajectory, heading toward $0.087.
The On Balance Volume (OBV) indicator paints a grim picture, showing declining volume support. This downward trend in OBV suggests weakening demand for HBAR as buyers hesitate to enter the market in significant numbers. A reversal in this metric is crucial for any meaningful recovery.
Short Sellers in Control: Potential Squeeze?
Derivatives data reveals a concerning imbalance between short and long positions. Approximately $15.32 million in short positions dwarfs the $2.66 million in long positions, highlighting a 475% dominance of shorts. While this indicates bearish sentiment, it could also set the stage for a potential short squeeze if HBAR manages to rally even slightly. Such short squeezes can lead to rapid price spikes, offering traders a window of opportunity.
Can Bulls Regain Control?
For HBAR to recover, it needs to break above the $0.144 resistance level. A daily close above this point would provide some optimism for buyers, potentially pushing the price toward $0.164. However, such a move would require two key conditions: an increase in OBV and a reduction in the short-heavy derivatives positioning. Without achieving these, any upward momentum is likely to face strong resistance.
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Disclaimer
This analysis is for informational purposes only and should not be considered financial or investment advice. Always conduct thorough research and consult a qualified professional before making any trading decisions.
