Why traders are betting big on Hedera – And what could go wrong

Key Takeaways

HBAR climbed to $0.237, retesting the $0.26 resistance that previously triggered a 50% correction. Is the bullish trader bias strong enough to ignite the next breakout?

Hedera [HBAR] has again approached the crucial $0.26 resistance, one that triggered a 50% price crash earlier this year.

At press time, HBAR hovered around $0.237, up 1.6% in the last 24 hours, according to CoinMarketCap.

While price tested this resistance once before, that rally failed. The question now: Will this retest spark a breakout or another drop?

Bullish on-chain metrics fuel confidence 

Despite fears of a potential correction, traders appeared to have a bullish outlook as they were strongly betting on long positions.

Data from CoinGlass revealed that 66.02% of Binance traders were long on HBARUSDT as of the 16th of July.

The Long/Short Ratio stood at 1.94, indicating a strong bullish skew. This shows growing confidence among derivatives traders despite the resistance overhead.

That said, these levels can attract aggressive counter-trades if bulls fail to flip $0.26 into support.

Exchange outflows point to accumulation

Investors have also shown interest and confidence in the token, as reflected by their accumulation over the past 48 hours.

Data from CoinGlass revealed that over $4.48 million worth of HBAR has been withdrawn from exchanges during this period.

This outflow amid the correction suggests potential accumulation, which could create buying pressure and help the asset breach its key resistance level.

Technical setup signals potential breakout

AMBCrypto’s technical analysis shows HBAR consolidating just below the $0.26 resistance zone.

A breakout above $0.265 could send the price up to $0.37, marking a 39.6% rally from current levels.

However, if price fails to break out, it risks falling back to $0.22, roughly a 13% downside.

Technically, HBAR remains bullish on the higher timeframe. The asset continues to trade above the 200-day Exponential Moving Average (EMA) at $0.1808.

But traders should take note: the Relative Strength Index (RSI) remained at 78, signaling overbought territory and increasing the odds of a short-term correction before any sustained breakout.