Key Takeaways
- HBAR’s funding rate has flipped negative twice in 10 days, indicating a shift in trader sentiment toward short positions and a growing expectation of further price declines.
- Technical indicators like the RSI have entered bearish territory, reinforcing selling pressure and suggesting that HBAR may face continued downward momentum if it fails to break key resistance at $0.172.
Hedera’s native token, HBAR, is showing signs of a prolonged downtrend as market sentiment weakens. Over the past ten days, HBAR’s funding rate has flipped from positive to negative twice — the first time such shifts have occurred in a month. This trend suggests that traders are increasingly favoring short positions, anticipating a further price drop. The rise in short dominance reflects a broader loss of confidence among investors who now appear to be bracing for continued declines in HBAR’s value.
Technical Indicators Signal Growing Weakness
From a macro-technical perspective, HBAR’s indicators are aligning with this bearish sentiment. The Relative Strength Index (RSI), a key momentum indicator, dropped into bearish territory at the end of May and has now reached its lowest point in two months. This sharp decline in RSI points to intensifying selling pressure and weakening momentum, both of which diminish the likelihood of a near-term price recovery. Combined with the negative funding rate, these signals suggest that HBAR may be poised for further losses unless market dynamics shift dramatically.
Price Hovers Below Resistance, Key Support at Risk
At the time of writing, HBAR is trading at $0.168, just shy of the crucial $0.172 resistance level. The altcoin’s inability to break through this ceiling underscores its current weakness. Should HBAR fail to hold the support at $0.163, it risks slipping further to $0.154 — a move that would reinforce the bearish trend and likely trigger even more short positioning. However, a breakout above $0.172 could flip the narrative. Pushing past this resistance might allow HBAR to target $0.182, a level that could reignite bullish sentiment and restore some investor confidence.
For now, HBAR remains at a critical juncture, with mounting bearish indicators suggesting more downside unless bulls regain control.
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
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
