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Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment

Hedera’s HBAR drops again as short positions rise, signaling strong bearish momentum despite ETF optimism.

Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment
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Hedera Price Outlook: Can ETF Inflows Reverse the Bearish Trend?

Hedera’s native token, HBAR, has extended its losses for the second consecutive day, with derivative data signaling that bearish traders are gaining control. The recent price action and technical indicators suggest that the asset could face further downside pressure unless a strong reversal pattern emerges.

Declining Price and Rising Short Interest

At the time of writing, HBAR had fallen by 6%, trading near $0.1925. Market activity appeared muted, with trading volume dropping 38% to around $512 million, according to AMBCrypto’s analysis.

Data from derivatives platform CoinGlass shows that traders are increasingly favoring short positions, reinforcing the bearish sentiment surrounding the asset. The report highlights major liquidation levels at $0.1888 (support) and $0.1972 (resistance).

At these critical price zones, traders are heavily leveraged — with approximately $2.9 million in long positions and $7.24 million in short positions. If HBAR’s price dips below the $0.1888 support, long positions worth nearly $3 million are at risk of liquidation.

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This imbalance reflects a strong bearish bias among market participants, many of whom believe HBAR is unlikely to break above the $0.1972 resistance level in the near term.

Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment

Technical Indicators Point to Sustained Downtrend

A closer look at the daily price chart shows HBAR remains in a clear downtrend, trading below its 200-day Exponential Moving Average (EMA) and moving within a descending channel pattern.

AMBCrypto analysts noted that the token is forming a bearish candlestick pattern, partially confirmed by recent declines. A daily close below $0.188 could signal a deeper correction, potentially pushing the price down by over 24%, toward the $0.142 region.

The Average Directional Index (ADX) currently sits at 34.24, well above the threshold of 25 — indicating strong directional momentum and further validating the ongoing bearish pressure. In addition, the Supertrend indicator remains red, confirming that sellers are still in control.

Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment

What Could Trigger a Reversal?

Despite the prevailing bearish outlook, analysts suggest that a breakout above the descending channel could mark the beginning of a potential recovery. A confirmed daily candle close above the upper trendline would be needed to shift the market sentiment to bullish territory.

Adding a layer of optimism, the recent approval of a spot HBAR Exchange-Traded Fund (ETF) in the United States could attract new institutional and retail investors. The ETF, issued by Canary Capital under the ticker HBR, recorded an impressive $45 million in inflows shortly after launch — a sign of growing investor interest in the Hedera ecosystem.

Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment

Hedera (HBAR) Faces Continued Losses as Short Positions Strengthen Bearish Sentiment
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