Hedera: The Importance of the $0.188 Support Level for HBAR's Next Steps

Hedera [HBAR]

Hedera's HBAR token has faced a notable decline recently, dropping 6% and revealing a bearish market sentiment. With trading volume diminishing and short positions rising, all eyes are on the crucial support level of $0.188. A break below this threshold could lead to further price drops, while a rally above $0.1972 could signal a bullish reversal.

Key Takeaways

HBAR has experienced a 6% decrease, alongside decreasing trading volume and increasing short positions, suggesting bearish momentum.
A breakout from the descending channel and sustained inflows from ETFs may shift sentiment towards a bullish outlook.
HBAR has now seen price declines for two consecutive days.

Current HBAR Price and Key Levels

As of now, HBAR is trading around $0.1925 after a 6% drop, demonstrating reduced market participation as trading volume fell by 38% to $512 million. This downturn has triggered a shift in trader sentiment towards short positions, as reflected by data from CoinGlass. Notably, HBAR’s critical liquidation points are at $0.1888 for support and $0.1972 for resistance. Traders hold $2.90 million in long positions and $7.24 million in short positions at these levels.

HBAR Exchange Liquidation Map

Given the ongoing price decline, the long positions worth $2.90 million are nearing liquidation if HBAR falls below the $0.1888 mark. The data suggests that traders with a bearish outlook currently dominate the asset, believing HBAR will struggle to exceed $0.1972.

Technical Analysis of HBAR Price Action

AMBCrypto's analysis reveals that HBAR is firmly in a downward trend. This decline is primarily due to two significant indicators: the token trading below its 200-day Exponential Moving Average (EMA) and moving within a descending channel marked by clear upper and lower trendlines.

HBAR price action

The chart also illustrates signs of a bearish candlestick pattern. Today's drop has partially confirmed this pattern, which suggests that the downtrend may continue. If HBAR keeps losing ground and closes below the $0.188 level, it may fall further, potentially dropping over 24% to around $0.142. Moreover, the Average Directional Index (ADX) is currently at 34.24, indicating strong directional momentum and further supporting the bearish outlook. The Supertrend indicator continues to display a red signal, affirming the bearish trend.

Conditions for Potential Reversal of HBAR

A change in HBAR's bearish trend could occur if the price breaks out of the current channel pattern and closes a daily candle above it; without this development, the bearish sentiment is likely to persist. On a positive note, the recent approval of the spot HBAR ETF (Exchange-Traded Fund) in the United States could enhance HBAR's bullish prospects. This approval allows traditional investors and institutions to participate in HBAR, as evidenced by Canary Capital's HBR ETF attracting a notable $45 million in inflows, indicating growing investor interest and confidence in the asset.