Hedera Traders, Watch Out: Is a Major Price Drop Coming?
The cryptocurrency market has been buzzing lately, and Hedera (HBAR) is no exception. If you’re actively trading HBAR, recent market movements suggest a potential 20% price drop could be on the radar. But what are the key driving factors behind this forecast, and what should traders watch out for?
Recent Price Action
On August 29, Hedera’s price saw a 4.75% decline, settling at $0.2290. This drop came amidst a broader market downturn affecting major digital assets like Bitcoin (BTC) and Ethereum (ETH), both of which also suffered significant losses in the last 24 hours. During this period, Hedera’s trading volume surged by 45%, reflecting increased participation from traders and investors.
Despite this activity, the market sentiment around HBAR remains bearish, with short positions dominating. Data from CoinGlass revealed that $2.96 million in short positions were held compared to bull positions worth $832k, signaling a heavy bias toward bearish sentiment.
Could Hedera Hit the $0.18 Zone?
Technical analysis reveals a descending triangle pattern, with HBAR repeatedly testing the $0.226 support level. Historically, this level has held firm. However, if daily candles close below $0.223, analysts believe this could trigger a 20% fall towards the $0.18 zone.
There is still room for cautious optimism, though. The Supertrend Indicator remains green, sitting below HBAR’s price, indicating a lingering uptrend. Simultaneously, Hedera’s Relative Strength Index (RSI) stands at 43.80, signaling that the asset is not currently overbought or oversold.
Encouraging On-Chain Data
While the broader market appears weak, some on-chain data offers a glimmer of hope. Approximately $3.18 million worth of HBAR has exited exchanges, suggesting accumulation by traders looking to hold. Historically, such outflows indicate bullish sentiment, which could provide some resistance against downward price pressures.
How Traders Can Navigate This Situation
For traders seeking to navigate this uncertainty, monitoring key technical levels and market sentiment is essential. Tools like the CoinGecko Trading Volume Tracker and CoinGlass liquidation data can provide real-time insights. If HBAR drops below $0.223, consider adopting a short-term bearish strategy. Conversely, sustained outflows and a solid hold at $0.226 could signal a reversal opportunity.
Is Now the Time to Consider Hedera?
If you’re looking for an entry point into Hedera for the long term, consider the possibility of price consolidation near the $0.18 level. For those interested in optimizing their trading experience, using tools like the Ledger Nano X hardware wallet can ensure your digital assets remain secure in these turbulent times.
As always, cryptocurrency investments carry risk. Perform adequate research and ensure you stay informed about market trends. The volatile nature of digital assets like HBAR requires both strategy and caution.
