HBAR Open Interest Hits $450M As Price Faces Strong Resistance- Is It A Good Time to Buy?

The futures Open Interest of Hedera (HBAR) has rocketed to a new high of US$ 450 million. This big jump indicates that traders are getting into the market with leverage positions hoping to get big price moves. While the recent ETF news has brought more attention to Hedera, the Open Interest surge goes beyond hype. It indicates that HBAR futures market is currently receiving serious capital flow.  

Price rebounds from demand zone and aims for $0.35 but faces resistance near $0.265

HBAR has seen a powerful bullish wave which has taken an initiation in the $0.15 demand zone, confirming a double-bottom reversal pattern and reclaiming a prior mid-range structure. 

The Parabolic SAR has crossed over to the bullish region thereby confirming the current bullish impulse. After breaking the $0.22 resistance level price jumped slightly up to $0.265 then gently back down to a current price of $0.233.

The Relative Strength Index is currently at 77.4, signaling overbought conditions that have historically been followed by local corrections or periods of consolidation. As long as long term HBAR price prediction holds above the $0.22-$0.20 support zone, the bulls might push to retake $0.265 and continue the upward move to about $0.35, which represents rigorous resistance in the past.

In contrast, a break of the $0.22 support may kick off a corrective move to the $0.20 level or further to the 0.19 area, which may threaten the bullish pattern. Technically, it is advantageous to the bulls but the overbought RSI indicator and the recent price bounce-back highlight the need to be careful.

Spot outflows and positive funding rates reinforce conviction among long-term holders

Coinglass analytics show that, over the past 24 hours, HBAR has moved out of centralized exchanges, reaching an amount of around 2,360,000, which is a significant and consistent outflow. This action implies that a significant part of the community is now moving their tokens into self-custody or long-term storage. 

At the same time, funding rates on some of the leading derivatives venues, such as Binance, switched to a positive range around +0.01%. Following an extended stretch of negative prints, this development confirms that long traders are now obliged to remit a premium to sustain their positions. Therefore, the prevailing sentiment among leveraged participants remains resoundingly bullish.

Together, these outflows and rising funding rates show strong conviction among both spot and leveraged traders. These shifts suggest that market participants expect continued upside, and they are positioning accordingly while reducing exposure to sudden downside risk by pulling tokens from exchanges.

Institutional involvement from Lloyds and Aberdeen validates HBAR’s enterprise utility

The tokenization of real-world assets (RWA) by Lloyds Bank and Aberdeen Asset Management over Hedera will mark a new milestone in the institutional exposure of HBAR. This was implemented by Archax on its permission to DeFi platform, and to test scalable blockchain-based financial processes using tokenized units of Aberdeen money market fund.

Lloyds Bank has a market capitalization of 60 billion, and Aberdeen asset management has more than 650 billion assets under its management. This pilot goes further than a small test and demonstrates a institutional trust in the Hedera infrastructure. 

The deal also makes Hedera a legitimate network that can be used to administer compliant, enterprise-grade tokenization in the financial sector. This is notably practical in the UK, where $5.4 Trillion of derivatives are settled on a daily basis.

The rising interest in HBAR ETF with odds of approval as high as 90% is further making a bull case for the price.

Conclusively, the recent uptrend in HBAR is driven by an uncommon combination of potent technical set up and institutional adoption. The emergence out of a double-bottom pattern accompanied with a historic Open Interest and spot outflows, highlight a long-term bullish conviction and this looks a good asset to add on dips. Not financial advise. 

Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.