Hedera (HBAR) is currently trading below the $0.101 mark following a weekend attempt to breach a significant resistance zone. The cryptocurrency’s recent trading pattern hints at a challenging outlook for investors, as derivatives data reveals a bearish sentiment.
Currently, Hedera’s futures open interest (OI) has diminished to $104.58 million, showing a continuous decline since early January and approaching the lower levels seen in February. This drop suggests decreasing investor engagement in Hedera, further projecting a bearish outlook for the token.
Detailed analysis from Coinglass indicates that the sentiment among traders is leaning toward the negative. The OI-Weighted Funding Rate metrics reveal that more traders are betting on a price decline than those anticipating an increase. As of Tuesday, this funding rate has turned negative, resting at -0.011%. This negativity in funding rates signals that short positions are currently more dominant, adding to the bearish sentiment surrounding HBAR.
In terms of price action, HBAR faced rejection around the 50-day Exponential Moving Average (EMA) at $0.105 over the weekend, leading to a slight decline the following day. This level of resistance aligns with the upper trendline of a falling wedge pattern, defined by connecting various highs and lows since the end of June. Prices as of now are hovering around $0.101, and if this downward trend continues, HBAR may test the weekly support level at $0.090. A close below this mark could trigger further declines, potentially reaching the next support level of $0.072, coinciding with lows from October 10.
Analyzing key technical indicators, the Relative Strength Index (RSI) charts a downward trajectory, currently at 51, suggesting a weakening bullish momentum as it approaches the neutral 50 level. For sustained bearish momentum to take hold, the RSI must dip below this neutral mark. Conversely, there is a positive sign in the Moving Average Convergence Divergence (MACD) indicator, which indicated a bullish crossover on February 10, suggesting that bullish momentum is still possible.
On the optimistic side, should HBAR manage to recover and close above the critical resistance level at the 50-day EMA of $0.105, it may pave the way for an advance to the next weekly resistance level of $0.125, providing a glimmer of hope for traders seeking to capitalize on a price rebound. However, the current market conditions appear to suggest a tough journey ahead for Hedera.
