HBAR, the native cryptocurrency of the Hedera Hashgraph network, is up 8% in 24 hours. This surge comes after a few days of declines after the altcoin hit a three-year high of $0.39 on Dec. 3.
However, HBAR’s 8% rise in 24 hours only reflects the broader market rally. The bearish bias against it remains significant, putting it at risk of resuming its downward trend. This analysis explores the reasons behind this.
Hedera Bears Take Over
The Hedera token price has seen an 8% increase in 24 hours, while trading volume has plummeted by 21%. Rising prices with falling volume are often interpreted as bearish divergence, a potential signal to be cautious about the continuation of the uptrend.
This pattern indicates that speculative buying, rather than genuine demand, is driving the price increase, making it less likely to hold.
HBAR Price and Trading Volume. Source: Santiment
The low activity around HBAR is evidenced by the drop in open interest in its derivatives market. At press time, this stands at $292 million, having fallen 38% over the past five days. A drop in open interest indicates that fewer contracts are being traded or held, often suggesting reduced market participation or declining investor confidence in the asset.
HBAR Open Interest. Source: Coinglass
Furthermore, the overall market sentiment towards HBAR remains bearish, as reflected by its negative weighted sentiment metric. According to Santiment, the metric has only shown negative values since HBAR’s fall from its three-year high on December 4. At the time of writing, it stands at -0.13.
This on-chain metric measures the overall sentiment of social media mentions about an asset, considering both the volume and polarity of the comments. A negative weighted sentiment indicates that the majority of social media mentions are negative, suggesting a bearish sentiment towards the asset.
HBAR Weighted Sentiment. Source: Santiment
HBAR Price Prediction: Key Resistance to Break
On the HBAR/USD daily chart, the Awesome Oscillator supports a bearish outlook, with the past five days showing only red histogram bars. This indicator assesses market momentum, and red bars signal a decline in momentum, pointing to weakening uptrends or increasing bearish pressure.
Currently trading at $0.30, HBAR could drop to $0.25 if bearish pressure intensifies.
HBAR Price Analysis. Source: TradingView
On the other hand, if the market sentiment changes from bearish to bullish, the Hedera token price could break the resistance at $0.31 and attempt to regain its three-year high of $0.39.
The post Hedera (HBAR) Below $0.39, Open Interest Drops 38% appeared first on BeInCrypto.
