Hedera’s HBAR Long/Short Ratio Hits 30-Day High at 1.06 Amid Market Volatility

Hedera’s (HBAR) long/short ratio has surged to a 30-day high, indicating a shift in market sentiment towards optimism. This development comes amidst significant market volatility and widespread long liquidations across various assets. The increasing bullish sentiment suggests that HBAR could potentially reverse its downward trend and achieve gains in the near future.

Despite the broader market downturn that has affected altcoin prices, HBAR is showing resilience in terms of investor positioning. Data from Coinglass reveals that many traders are entering long positions on the token, reflecting growing confidence in a potential price increase. This is evidenced by HBAR’s long/short ratio, which currently stands at a 30-day high of 1.06. The long/short ratio measures the proportion of long positions to short positions in the market. A ratio above one indicates that more traders are holding long positions than short positions, signaling a bullish market sentiment.

Additionally, HBAR’s open interest has increased, further supporting the bullish outlook. As of the latest data, open interest is at $142 million, marking a 3% rise in the past 24 hours. Notably, during this period, HBAR’s price has decreased by 2%. When an asset’s price falls while open interest rises, it suggests that traders are actively entering new positions, potentially anticipating a future price rebound despite the current decline. The combination of HBAR’s high long/short ratio and rising open interest, despite falling prices, indicates that the majority of its traders have a bullish outlook. This suggests that even with price declines, HBAR traders anticipate an upward trend in the near future.

At the time of reporting, HBAR is trading at $0.15. The gradual resurgence in bullish sentiment and new demand could reverse its current downtrend and push HBAR toward $0.17. However, if profit-taking continues and bullish pressure subsides, HBAR could face a decline and fall to $0.11. The market’s anticipation of a price reversal for HBAR is driven by the increasing number of long positions and the rising open interest, which together suggest a bullish outlook for the token.