Hedera’s native token HBAR is experiencing increasing sell-side pressure as it approaches a potential return to its two-month low. The token has dropped nearly 10% in the past week, reflecting the broader market downturn.
With heightened caution among investors, HBAR could decline further if the bearish sentiment intensifies.
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HBAR Faces Increasing Selling Pressure Amid Market Retreat
The setup of HBAR’s Moving Average Convergence Divergence (MACD) indicator on a daily chart shows a negative outlook for the altcoin.
At the moment, the token’s MACD line (blue) is below the signal line (orange), with the size of the red histogram bars increasing over the past three sessions, indicating growing bearish activity.
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The MACD indicator helps identify trends and momentum in price movements, allowing traders to spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line, it signifies weakening sell pressure and strengthening buy momentum.
Conversely, as is the case with HBAR, when the MACD line falls below the signal line and the histogram shows expanding red bars, it indicates intensifying bearish momentum and increasing selling pressure in the market.
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Additionally, HBAR’s declining futures open interest confirms decreasing market participation. According to Coinglass, this currently stands at $362.49 million, a 20% drop over the last five days.
Open interest refers to the total value of outstanding derivative contracts, like futures or options, that remain unsettled.
A decline in an asset’s open interest indicates that traders are closing their positions or withdrawing from the market, reflecting diminished confidence.
For HBAR, this decrease suggests fewer investors are actively trading the token in derivatives markets, potentially making it more susceptible to continued selling pressure.
HBAR Could Decline Further if Support Fails
A sustained sell-side pressure could lead HBAR’s price to test the support level at $0.2155. If bulls are unable to maintain this level, the altcoin might extend its downward trend and drop to a two-month low of $0.1944.
However, if new demand returns to the HBAR market, it could initiate a rally toward $0.2667.
