Hedera's HBAR Drops 5% Amid Market Uncertainty, Open Interest Plummets 20%

Hedera's HBAR token has experienced a significant decline in open interest, reaching its lowest point for the year. This drop coincides with a broader market uncertainty that has led to a weakening of digital assets, with Bitcoin hinting at potential dips toward $70,000. HBAR has lost more than 20% of its value over the past week, indicating a declining demand and potential trouble for the altcoin.

The Open Interest indicator, which measures yet-to-be-settled options and futures contracts, has plummeted to $149.69 million, a level not seen since November 2024. This decline highlights a reduction in leveraged positions as participants lose interest in the asset. The trend of decreasing open interest aligns with HBAR's bearish price performance, as the altcoin has lost nearly 15% on its monthly chart. This suggests fading trader confidence and market participation, with traders closing existing positions without opening new ones, which implies magnified selling pressures and a potential delay in HBAR's recovery.

Technical signals further support the downward bias. The Chaikin Money Flow has slipped from its peak on March 7 to -0.30, indicating money flowing out of Hedera's ecosystem as investors and traders exit. The 4-hour Moving Average Convergence Divergence (MACD) confirms the asset's dire situation, with a robust bearish crossover and dominant red histograms signaling bear control. Additionally, HBAR has returned to a descending parallel setup, a channel that kept the altcoin in a bearish trend between January 16 and March 1. The token briefly breached the pattern's upper boundary last week amidst increased broad market volatility but has since been pushed back into the channel, hinting at amplified bearish pressure and positioning Hedera for extended price declines.

Bears are likely to target the support zone at $0.16, a 20% slump from current prices of $0.1987. Hedera's current price outlook displays significant bearishness as liquidations rattle the cryptocurrency industry. It has lost over 5% within the past day to hover at $0.1987, with a notable uptick in 24-hour trading volume signaling increased actions from HBAR sellers. The prevailing performance positions Hedera for further price declines before a significant buyer resurgence. Broad market sentiments remain key