HBAR Drops 10% with Growing Short Positions in Futures Market

Hedera Hasgraph’s HBAR has been caught in the broader market downtrend, shedding 10% of its value in the past 24 hours. At press time, the altcoin trades at $0.22.

This double-digit decline has led to a surge in short positions in the HBAR futures market as traders anticipate further losses.

HBAR Short Sellers Take Control

BeInCrypto’s assessment of HBAR’s long/short ratio confirms the bearish bias against it in its futures market. As of this writing, this ratio stands at 0.96.

HBAR Long/Short Ratio. Source: Coinglass

An asset’s long/short ratio compares the number of its long positions (bets that the price will rise) to short ones (bets that the price will fall) in the market. When the ratio is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.

On the other hand, as with HBAR, a ratio below one indicates that traders are largely betting on a price decline. This signals a strong bearish sentiment in the market, reinforcing expectations of further downside.

In addition, readings from technical indicators like the Chaikin Money Flow (CMF) reflect the selling activity in the HBAR spot markets. At press time, this momentum indicator is below zero at -0.08 and in a downward trend.

HBAR CMF. Source: TradingView

The CMF indicator measures money flows into and out of an asset. When it returns a value below zero, the market is dominated by sellers distributing their holdings, putting significant downward pressure on the asset. This suggests that HBAR is poised to extend its price decline in the short term as selloffs strengthen.

HBAR Price Prediction: Bearish Momentum Could Push Token to $0.16

HBAR trades at $0.22 and faces resistance at the $0.24 level. Due to the bearish bias against the altcoin, its value would likely continue to drop. In that scenario, HBAR risks falling to support at $0.20.

A break below this level could lead to a further decline to $0.16.

HBAR price Analysis. Source: TradingView

On the flip side, if bullish momentum returns to the market, HBAR could initiate a rally above the $0.24 resistance. If it breaches this level, it could climb further to $0.28.