Market Sentiment Turns Bearish
Investor optimism surrounding a short-term recovery in Hedera’s HBAR token continues to fade. As bearish positions grow among derivatives traders, HBAR remains exposed to deeper downside risks. The token is currently trading at $0.2077, marking a 15% drop over the past week.
This price decline has significantly weakened sentiment in HBAR’s derivatives market. Data from Coinglass shows futures open interest has dropped 26% since September 13, now sitting at $350 million. A declining open interest, particularly during a price dip, typically reflects traders exiting positions and pulling liquidity from the market—both signs of waning confidence.
Long/Short Ratio Tilts Bearish
As of writing, HBAR’s long/short ratio stands at 0.86, signaling that short positions now outnumber longs. This ratio, which compares the number of long contracts to short ones, often serves as a proxy for market sentiment. A reading below 1.0 indicates that traders are leaning bearish, expecting further price losses.
Technical Breakdown Below 20-Day EMA
HBAR is also trading below its 20-day exponential moving average (EMA)—currently at $0.2281—suggesting a breakdown in bullish momentum. The 20-day EMA, a key trend indicator, often acts as dynamic support or resistance. With HBAR now beneath it, the moving average has flipped to resistance, and sellers appear to be in control.
If this bearish trend continues, the next support zone lies near $0.1788, raising the stakes for bulls to reclaim key levels, starting with $0.2212.
