Hedera Price Prediction: Sharp Reversal at $0.208 Signals Short Setup in Play

Hedera (HBAR) has entered a phase of increased volatility following a recent rejection near the $0.208 level. Technical analysts and on-chain data indicate that bearish momentum may be gaining traction.

The price reversal, confirmed by multiple indicators and supported by rising open interest followed by a sharp decline, has led some traders to anticipate a short setup emerging in the short term. Market participants are closely watching how HBAR responds to nearby resistance and whether downside continuation could test lower support zones.

Bearish Breakdown on Lower Timeframes Suggests Trend Reversal

According to chart analysis shared by BullFrog Crypto, the 30-minute HBAR/USDT chart indicates a short bias with a suggested entry point around $0.19552. The chart shows a breakdown from a previously established consolidation range, now acting as resistance.

This shift in market structure is supported by the emergence of lower highs and lower lows, typical characteristics of a developing downtrend. The annotated trendline labeled “SHORT FOLLOW THE LINE” aligns with this move, pointing toward a continuation to the downside.

Source:X

The analysis highlights a key supply zone, marked by a grey rectangle, where price consolidated before its sharp decline. This area is now viewed as a potential rejection zone if the price retraces upward. Short positions around the supply zone would target possible supports near $0.185–$0.180, in alignment with prior reaction levels.

The short trade setup is suited for short-term traders, particularly those using leverage on intraday timeframes, where the trade may play out over several hours. The risk is clearly defined, with a tight invalidation point just above the resistance zone, allowing for controlled exposure.

Open Interest and Price Correlation Reflect Long Squeeze Dynamics

Further supporting the bearish scenario is recent open interest data from the 1-hour HBAR/USDT chart. The price experienced a notable upswing from May 19 to May 23, rising from a local low into a peak near $0.20866. However, this move was met with significant resistance and a subsequent steep price drop.

During this same period, open interest rose sharply to approximately $5.8 million, indicating increased leveraged exposure and bullish positioning.

Source:OpenInterest

However, the sudden drop in open interest following the price peak—falling to below $4.1 million by May 25—suggests widespread liquidation or closing of long positions. This behavior is typical of a “long squeeze,” where traders holding leveraged long positions are forced to exit as price reverses against them.

The steep decline in both price and open interest underscores the weakness in bullish conviction and highlights the caution currently observed among market participants. The lack of recovery in open interest suggests muted participation, which may contribute to continued volatility if no new buying support emerges.

Short-Term Pressure Aligns with Broader Bearish Indicators

On the broader timeframe, the 24-hour chart from Brave New Coin confirms short-term bearish momentum. HBAR is currently priced at $0.188433, reflecting a -1.75% drop in the last 24 hours. Intraday action included a brief rise near $0.191, followed by steady declines to lows around $0.186, with slight recovery late in the session.

Source:BraeNewCoin

Trading volume reached $109.72 million, indicating moderate activity but not enough to suggest an imminent reversal. This pattern reflects profit-taking and general market caution, with the selling pressure outweighing demand.

Additionally the weekly chart on TradingView reinforces this narrative. Price closed at $0.18822, down 4.43% for the week, with momentum indicators showing weakness. The MACD histogram remains negative at -0.00591, and the MACD line continues to trend below the signal line, confirming ongoing bearish momentum.

Source:TradingView

Meanwhile, the RSI sits at 50.03, reflecting a neutral stance but trending lower. Without a decisive move above the $0.20–$0.21 resistance zone, the price may continue its slow descent or remain range-bound under key resistance levels.

In summary, Hedera is facing short-term technical weakness with reduced open interest and bearish indicators confirming downside risk. A confirmed break below recent support could open the door for further retracement unless new buyers enter the market with volume-backed strength.