HBAR cracks $0.05 support – what’s next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bears broke the bullish defense of the $0.05 support to flip HBAR bearish.
- Shorts held a 52.54% advantage on the long/short exchange.
Hedera’s [HBAR] week-long price dip broke the previous higher low and pushed prices below the critical $0.05 support level. This delivered profits of over 15% to HBAR shorts.
How much are 1,10,100 HBARs worth today?
The break of the critical support level signaled a shift in momentum on the higher timeframes, with a high possibility of a further downward move. In the meantime, Bitcoin’s [BTC] sub-$26k price action could be the perfect opportunity for bears to extend their gains.
Bears wipe out July gains
July was an excellent month for HBAR bulls. Using the $0.05 price level as a support, buyers racked up a 50% price pump for HBAR. However, the price rejection at the $0.075 price zone ushered in a wave of sustained selling pressure.
The sharp retracement between 15 August and 17 August eased off with a bullish recovery on 19 August. Yet, the selling pressure persisted with another price rejection at the $0.067 price zone.
This time sellers maximized the selling pressure, sinking HBAR below the $0.05 support – a strong defense for bulls. This led to a break in the previous higher low in early August and signaled a bearish takeover of HBAR’s market structure.
A look at the on-chart indicators hinted at further losses. As of press time, the Relative Strength Index (RSI) dipped aggressively from the overbought zone and hovered just above the oversold zone.
The On Balance Volume (OBV) also extended its sharp decline. Both indicators hinted at a lack of bullish conviction and demand for HBAR.
Sellers ready to push lower
Read Hedera’s [HBAR] Price Prediction 2023-24
The bearish bias was on full display in the futures market. The exchange long/short data from Coinglass showed shorts held a 52.54% advantage. This amounted to $3.92 million worth of selling positions as against $3.54 million worth of buying positions.
Along with HBAR’s negative funding rates, shorts could reach the June lows of $0.04 to $0.045 in the coming days.