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.

The price of Hedera’s native token, HBAR, has slipped in recent days, amid a surge in short positions and bearish technical signals.

Here’s what happened.

HBAR Price Drops As Short Positions Soar

Over the past days, HBAR has dropped sharply and is currently trading around $0.17. This decline is evident in the 7-day price chart.

This downturn has also seen the HBAR long/short ratio drop to 0.86, its lowest point in a month. A ratio below 1 indicates that short positions (bets on price declines) are outperforming long positions (bets on price rises), highlighting a strong bearish market sentiment.

Further highlighting this bearish scenario, the daily Chaikin Money Flow (CMF) indicator stands at -0.10, signaling substantial selling pressure. Negative CMF values typically arise when the average price declines, and they serve to reinforce the prevailing bearish sentiment.

Critical Support At $0.17

The combination of intensifying bearish sentiment and unfavorable technical signals places significant pressure on HBAR’s crucial support level at $0.17.

If this support breaks, HBAR could quickly descend towards a multi-year low near $0.11, a price point last seen in November last year.

However, if buying interest returns, a bullish scenario might unfold, pushing HBAR towards resistance at $0.22. Surpassing this resistance could propel the token towards $0.26.

For now, market dynamics strongly favor short sellers, keeping HBAR at risk of additional price declines. Investors should keep an eye on these pivotal price points.