Why HBAR Is Plummeting Amid Rising Short Interest

Hedera (HBAR) is currently facing substantial downward pressure, with the price sliding to $0.18, reflecting a 2% drop in value over the last 24 hours. Traders appear to be increasingly bearish on the altcoin, as indicated by rising short interest.

As the market sentiment grows more pessimistic, the long/short ratio has dipped to 0.86, marking its lowest level in a month. This shift suggests a significant uptick in short positions among derivatives traders.

Understanding the Surge in Short Positions

The long/short ratio is a measure comparing the number of investors betting on price increases versus those betting on declines. A figure below one indicates that short positions are outnumbering long positions, thus signaling prevailing bearish sentiments among traders.

In addition, HBAR's daily chart shows a negative Chaikin Money Flow (CMF), currently at -0.10. This indicator, reflecting net money movement into and out of the asset, further supports the bearish outlook. A negative CMF indicates that selling activity is predominant, with traders actively pushing prices lower.

Volatility on the Horizon as HBAR Approaches Critical Support Levels

The increasing demand for short positions raises concerns about HBAR's ability to maintain its footing above a crucial support level at $0.17. Failure to sustain this level may lead to a steep decline, potentially plummeting the price to lows not seen since November, around $0.11.

That said, if there is a resurgence in buying interest, this bearish forecast could be reversed. Should demand for HBAR increase, its price may rebound toward $0.22.

Potential for Price Recovery

Conversely, if the resistance at roughly $0.22 can be successfully breached, HBAR could possibly rally to around $0.26. Thus, traders should monitor the market closely to gauge sentiment and explore potential upside scenarios.

Conclusion

In summary, HBAR currently struggles under the weight of rising short interest, signaling a bearish approach from traders. Keeping an eye on critical support levels and market dynamics will be essential for forecasting future price movements.