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Despite challenging market conditions, Hedera (HBAR) traders are maintaining optimism for a potential recovery. The altcoin’s price has faced downward pressure, yet traders continue to place long contracts, signaling confidence in a possible rebound.
Traders Bet on HBAR’s Recovery
Currently, HBAR’s funding rate remains positive, suggesting that long positions dominate short contracts in the market. This indicates that traders anticipate a price increase, betting on a shift in momentum. A positive funding rate typically reflects investor confidence, yet given the current bearish conditions, these positions remain at risk if the downtrend persists.
However, broader market trends have not been favorable. While traders continue to bet on a recovery, a prolonged downturn could lead to significant losses for those holding long positions.
Bearish Trend Remains Strong
HBAR’s macro momentum is influenced by the Average Directional Index (ADX), which currently signals a strong bearish trend. With the ADX above the critical 25.0 level, the downtrend remains intact, indicating that further price declines are possible before a reversal can occur.
While traders are hopeful, the strength of the ongoing bearish trend raises concerns. Until momentum shifts or key market factors change, HBAR’s price may struggle to stabilize or turn bullish.
Key Support Levels to Watch
HBAR is currently trading at $0.184, marking a 6% decline in the past 48 hours. The altcoin recently failed to hold the crucial $0.197 support level, increasing the risk of further losses.
The next key support lies at $0.177, a level that has held strong multiple times over the past three months. If HBAR’s price falls to this level, consolidation could occur, potentially pausing the downtrend. However, if this support is breached, a deeper decline may follow.
For a potential recovery, HBAR would need to reclaim $0.197 as support. A successful breach of $0.222 could further bolster the altcoin’s momentum, signaling a shift toward a bullish outlook. However, this scenario hinges on improving broader market conditions and increased buying pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Hedera (HBAR) Price Plummets as Short Sellers Dominate—Will $0.17 Hold?
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
