HBAR Plunges 10%: Bearish Bias Intensifies as Short Positions Surge

HBAR, the native token of the Hedera Hashgraph platform, has experienced a significant decline in value, dropping by 10% over the past 24 hours. At the time of writing, HBAR is trading at approximately $0.22. This substantial decrease has led to a surge in short positions in the HBAR futures market, as traders anticipate further losses.

The long/short ratio for HBAR, as assessed by Coinglass, currently stands at 0.96, indicating a strong bearish bias against the token. This ratio compares the number of long positions (bets that the price will rise) to short ones (bets that the price will fall) in the market. A ratio below one signals that traders are largely betting on a price decline, reinforcing expectations of further downside.

In addition to the futures market dynamics, technical indicators such as the Chaikin Money Flow (CMF) reflect the selling activity in the HBAR spot markets. At the time of writing, the CMF indicator is below zero at -0.08 and in a downward trend. This momentum indicator measures money flows into and out of an asset. When it returns a value below zero, the market is dominated by sellers distributing their holdings, putting significant downward pressure on the asset. This suggests that HBAR is poised to extend its price decline in the short term as selloffs strengthen.

Given the bearish bias against HBAR, its value is likely to continue dropping. The token faces resistance at the $0.24 level, and a break below this level could lead to a further decline to $0.20. If the bearish momentum persists, HBAR risks falling to support at $0.16.

However, if bullish momentum returns to the market, HBAR could initiate a rally above the $0.24 resistance. If it breaches this level, it could climb further to $0.28. The future price trajectory of HBAR will depend on the broader market conditions and the sentiment of traders in the HBAR futures market.