Analysis
HBAR nears $0.05 support: Will sellers crack it?
HBAR sellers had market leverage as of press time and could attempt to seek more if the $0.0500 support cracks.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- A daily order block and $0.0500 were crucial roadblocks for sellers.
- Funding rates and Open Interest rates were dismal and could favor sellers.
Sellers who short Hedera [HBAR] on a higher timeframe from 27 August tucked in about 8% profit as of press time. HBAR faced price rejection at a weekly bearish order block (OB) near $0.0650, which made further downward move likely.
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In the meantime, Bitcoin [BTC] struggled to keep its recent gains after retesting the $28k level. It had eased to around $27.2k at the time of writing. If it drops below $27k, HBAR sellers could be tempted to seek more ground.
Can sellers push lower?
Source: HBAR/USDT on TradingView
The $0.0500 was a crucial support in May, June, and July. A daily bullish order block (OB) of $0.052 – $0.053 (cyan) exists above the $0.0500 support. So, sellers faced double roadblocks.
But if BTC drops below $27k, HBAR sellers could be emboldened to seek more gains. In such a case, late sellers could gain entry upon rejection and a confirmed retracement at $0.0500. The immediate support and next target for sellers will be the weekly bullish OB of $0.034 – $0.044 (white).
Conversely, a daily candlestick session close above $0.0500 will invalidate the short set-up. In such a case, HBAR could re-target the $0.06 overhead resistance.
The RSI and CMF recorded negative readings, underscoring increased selling pressure and muted capital inflows.
HBAR recorded negative funding and Open Interest rates
Source: Coinalyze
According to Coinalyze, HBAR’s funding rates have been negative for the last few days, underscoring the bearish bias in the futures market.
How much are 1,10,100 HBARs worth today?
In addition, the Open Interest rates eased from $27 million to $21 million in the past five days (24-31 August). The drop implies a decline in demand for HBAR in the futures market.
Furthermore, the CVD (Cumulative Volume Delta) dropped further, reinforcing sellers’ market leverage. So, late sellers could wait for a drop below $0.0500 and track BTC movement before shorting the asset.
