Hedera's (HBAR) cryptocurrency value has suffered a sharp decline this week, dropping by 12% to $0.26, its lowest point over the past seven days. In response to this downturn, futures traders have increasingly placed short positions, signaling expectations of further price decreases.
Data from Coinglass reveals a bearish sentiment with HBAR's Long/Short Ratio standing at 0.86. This ratio, representing the balance between long positions (betting on a price rise) and short positions (anticipating a price fall), shows a preference for shorts with 86 longs for every 100 shorts.
This indicates that traders largely forecast a decline in HBAR’s price.
The futures market's low activity further confirms this negative sentiment. With open interest, representing the count of active contracts yet to be settled, falling to $315 million – a 17% drop in the past six days – the reduced market participation indicates traders are closing positions rather than initiating new ones, reflecting dwindling confidence.
On the daily chart, Hedera's declining Accumulation/Distribution Line (A/D Line) echoes this decrease in purchasing interest. This volume-based indicator has dropped by 6% over the week, signifying stronger selling pressure over buying interest. This underscores the market's weak confidence in HBAR’s potential.
If selling pressure intensifies, HBAR's price could breach the $0.24 support level and possibly fall to $0.16. In contrast, a rebound in demand might drive the price upward to $0.33, marking a potential recovery.
Hedera's recent price movements, illustrated by its declining market indicators, forecast a challenging path ahead, as it battles increased short positions and bearish market sentiment.