Hedera’s native token, HBAR, has suffered a notable downturn in recent days, currently trading around $0.18. The token’s decline is clearly reflected in its 7-day price chart, showing a persistent downtrend that has alarmed investors.
Bearish Market Sentiment Dominates
One of the key indicators fueling this bearish momentum is the long/short ratio, which has plummeted to 0.86, marking its lowest point in a month. A ratio below 1 suggests that short positions (bets against price increases) significantly outweigh long positions, emphasizing the prevailing negative sentiment in the market.
Adding to the bearish outlook, technical indicators provide further confirmation. The daily Chaikin Money Flow (CMF) indicator stands at -0.10, signaling strong selling pressure. A negative CMF value typically indicates that more money is flowing out of the asset than coming in, reinforcing fears of a continued downturn.
Will HBAR Hold the Critical $0.17 Support Level?
With bearish forces mounting, all eyes are on HBAR’s crucial support level at $0.17. A breach of this level could trigger a more severe sell-off, potentially dragging the token down to $0.11—a price not seen since November last year.
However, a resurgence of buying interest could reverse this trend. If HBAR manages to sustain support and regain momentum, it could push toward resistance at $0.22. A successful breakout beyond this level might open the door for a further rally to $0.26, offering investors a potential recovery scenario.
What’s Next for HBAR?
As the market currently favors short sellers, HBAR remains at risk of further declines. Investors should closely monitor its movement around the $0.17 mark, as breaking below this threshold could significantly impact the token’s near-term trajectory.
Also Read: Hedera (HBAR) Price Analysis: Consolidation and Key Levels
For traders, staying updated on market dynamics and technical indicators is crucial in navigating HBAR’s volatile price action. Will buyers step in to defend the support level, or is another major dip imminent? The coming days will be critical in determining HBAR’s next move.
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.
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!
