Hedera (HBAR) Struggling to Find Support as Investors Continue to Pull Funds Out of the Market

Over the past week, $17 million has exited HBAR’s spot markets, with only a single recorded inflow of $1.78 million on January 19

Hedera (HBAR) has seen a net outflow of $17 million from spot markets over the past week, according to data from Coinglass.

This massive sell-off began on January 18 when traders pulled out a record $8.16 million from HBAR. Since then, there has been only a single recorded inflow of $1.78 million on January 19, while outflows have ranged from $2.36 million to a low of $1.16 million.

As of February 20, the total outflow stands at $16.9 million, putting significant selling pressure on HBAR.

Outflows Of This Scale Signal Bearishness

Outflows from spot markets, especially on a large scale like this, typically indicate rising selling pressure in the market.

This behavior suggests that traders are not confident in the asset’s future price performance and are choosing to liquidate their positions rather than accumulating more HBAR.

As a result, we can expect to see continued weakness in the token’s price movements.

Adding To The Bearishness: Negative Weighted Sentiment

Throughout the past week, HBAR’s weighted sentiment has remained firmly in negative territory, according to data from Santiment.

This metric analyzes traders' discussions about the asset on social media and online platforms, and the sustained negative readings suggest that traders are largely pessimistic about HBAR.

At the time of writing, the asset's sentiment score is -0.61, indicating a dominant bearish tone in market conversations.

This negative sentiment aligns with the bearish outlook for HBAR, further amplifying the selling pressure and contributing to the token’s price weakness.

Traders will Be Watching Closely As HBAR Trades Near $0.20

After reaching a four-year high of $0.40 on January 17, HBAR has been trending lower, losing 48% of its value and continuing to trade below a descending trend line that has dictated price movements since February 1.

Now, as the token trades at $0.21, traders will be watching the critical support level at $0.20.

If HBAR fails to hold this level, the next major support is around $0.17, and given the continued selling pressure, a drop to this level is becoming increasingly likely.

However, if demand picks up, a recovery toward $0.26 could be triggered by breaking out of the descending trend line.