Hedera’s native token, HBAR, has faced a sharp decline after failing to breach the $0.40 resistance level. The altcoin recently retraced to $0.25, a significant drop that has left traders uncertain.
While this correction may signal bearish sentiment in the short term, the broader macro outlook remains highly bullish. However, for HBAR to reclaim momentum, it must navigate the growing hesitation among market participants.
HBAR Traders Are Uncertain
The market’s reaction to HBAR’s recent downturn is evident in the Futures market data. Open Interest currently stands at $216 million, a sharp decline from $367 million just three days ago. This $150 million drop highlights the hesitancy among traders, many of whom are liquidating positions.
The contraction in Open Interest suggests a shift toward bearish sentiment. Traders are moving out of leveraged positions, signaling decreased confidence in a near-term recovery. As a result, unless a resurgence in interest occurs, HBAR’s price action could remain subdued.
From a technical perspective, HBAR’s macro momentum reflects a strengthening bearish trend. The Relative Strength Index (RSI) has dropped to a three-month low, last seen in November 2024. Currently sitting below the neutral 50.0 level, the indicator highlights growing downside pressure.
The falling RSI suggests sellers are gaining control, making it more challenging for bulls to push prices higher. If this downward momentum continues, it could suppress any breakout attempts, keeping HBAR range-bound for an extended period.
HBAR Price Prediction: Finding A Breach
Despite the short-term bearish pressure, HBAR is forming a macro bull flag pattern, historically a precursor to substantial rallies. If this setup plays out, the altcoin could see a 684% surge, targeting $2.83. However, for this rally to materialize, HBAR must decisively break through the $0.40 resistance.
In the near term, the probability of an immediate breakout remains low. The price is likely to continue consolidating within the $0.25 to $0.40 range. If downward pressure intensifies, HBAR could lose support at $0.25, triggering a further decline toward $0.18.
The only way to invalidate this bearish outlook is for HBAR to reclaim $0.40 as a support level. A successful breach of this resistance could fuel a rally toward $0.47, confirming a breakout from the bull flag pattern and paving the way for higher price targets.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source: https://beincrypto.com/hbar-price-primed-rally-open-interest-declines/