Following the latest market downturn, Hedera’s native HBAR token took a similar beating to the rest of the major-cap market. Sliding down by roughly 4% in 24 hours, bulls now have to turn the tides for HBAR before the altcoin breaks below the current structure.
Technicals Portray a Double-Edged Sword For HBAR
In that case, HBAR would retreat to $0.059, retesting a major demand floor that hasn’t been up for examination in years. On the other hand, this downwards price movement has helped form a classic falling wedge pattern.
In a recent analysis, crypto charter Gopal said “Selling pressure is fading as price compresses toward the wedge apex, while buyers continue defending support aggressively.” For that theory to hold, HBAR would have to hold above $0.066, reinforcing the first target at $0.072.
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For that kind of upward expansion to occur, the demand has to match with the bullish narrative: digging into the on-chain metrics, we can find out what the big-time investor sentiment is all about. Right now, it appears that both retail & crypto whales are cautious of calling a bottom.
Falling Wedge Overshadowed By Distribution & More
The True Strength Index (TSI) hovered in negative territory for nearly a week, dipping into the bearish mode last Thursday with a brief comeback on Sunday. The metric dictates a stronger bearish trend passing by on the one-hour charts, with crypto whales still actively distributing positions – the Chaikin Money Flow (CMF) flashes a highly-negative figure of -0.38.
The sleepy trading volumes is another part of the story. With just $49 million in 24-hour trades on Spot markets, HBAR is considerably falling behind peers of similar market caps, including Sui crypto (SUI), Avalanche (AVAX), Shiba Inu (SHIB) & Litecoin (LTC). The leveraged markets didn’t make the case more bullish – a whopping $281K out of $284.48K liquidated were longs.
Nevertheless, HBAR’s bulls managed to restore a positive score in the Open Interest (OI) weighted funding rate after the flush. That’s a good sign for traders looking for the bottom, but one thing to bear in mind is the current short versus long ratio. This has been shifted towards the bearish side, with short-sellers outnumbering the HBAR longs 1:0.89, says CoinGlass.
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