Hedera (HBAR) Price Slips Amid Rising Short Positions and Bearish Signals
Over the past days, Hedera’s native token, HBAR, has experienced a sharp decline and is currently trading around $0.18. This significant downturn is clearly visible in the 7-day price chart below :
This decline coincides with the HBAR long/short ratio dropping to 0.86, its lowest point in a month. A ratio below 1 indicates that short positions (bets on price declines) significantly outnumber long positions (bets on price rises), highlighting a strong bearish market sentiment.
Technical indicators further confirm this bearish scenario. The daily Chaikin Money Flow (CMF) indicator stands at -0.10, signaling substantial selling pressure. Negative CMF values reinforce the prevailing bearish sentiment.
Critical Support Level at $0.17 : What Happens Next?
The combination of intensifying bearish sentiment and unfavorable technical signals places significant pressure on HBAR’s crucial support level at $0.17.
If the token breaks this critical support, it could quickly descend towards a multi-year low near $0.11, a price not seen since November last year. Conversely, if buying interest returns, a bullish scenario might emerge, pushing HBAR toward resistance at $0.22. Successfully surpassing this resistance could further boost the price towards $0.26.
For now, market dynamics strongly favor short sellers, keeping HBAR at risk of additional price declines. Investors should closely monitor these pivotal price points.
