HBAR jumped 20% during Wednesday's trading. The surge followed Nasdaq's filing of a 19b-4 form with the SEC.

The document seeks approval to list and trade Grayscale's spot HBAR exchange-traded fund. Market data suggests the rally may be losing steam.

Several technical indicators now point to increasing bearish sentiment. Analysts warn HBAR could surrender recent gains in the near term.

HBAR's Balance of Power reading has turned negative at -0.09. This indicator compares the strength between buyers and sellers in the market. A negative reading signals that sellers have gained control of the price action.

"When an asset's BoP is negative, its sellers exert more control over price action," explained one market analyst. The current reading suggests weakening buying pressure. This pattern often precedes further price declines.

The Long/Short ratio adds to the concerning outlook. This metric currently stands at 0.98, indicating short positions now outnumber long positions in the futures market. When this ratio falls below 1.0, it reflects growing pessimism among traders betting on the asset's future price movement.

HBAR trades at $0.24 as of press time. The token currently sits above a key support level at $0.22. Technical analysts note this support could fail if selling pressure intensifies.

If bears maintain control, HBAR could potentially drop to $0.17. Conversely, a sentiment shift could push the price above resistance at $0.26. This would open a path toward the $0.31 level.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.