Hedera's HBAR Token Drops 2% Amid Surge in Short Interest

Hedera's HBAR token has been under significant pressure, experiencing another day of decline as traders continue to bet against the altcoin. At the time of reporting, HBAR was trading at $0.18, reflecting a 2% price drop over the past 24 hours. The market sentiment has turned increasingly pessimistic, with the long/short ratio signaling a surge in short interest.

The long/short ratio for HBAR has dropped to 0.86, its lowest level in a month. This indicates a sharp increase in short positions among derivatives traders. A ratio below one means there are more short positions than long ones, suggesting that traders are predominantly bearish on HBAR. This bearish outlook is further supported by HBAR’s negative Chaikin Money Flow (CMF) on the daily chart, which stands at -0.10. The CMF indicator measures how money flows into and out of the asset, and a negative reading suggests high selling activity, with sellers dominating the market and looking to push prices lower.

The growing demand for short positions highlights investors’ expectations of further downside, raising concerns about HBAR’s ability to hold above the critical support level formed at $0.17. If HBAR fails to maintain this level, the token’s price could plummet to a multi-month low of $0.11, which it last traded at in November. However, a resurgence in demand for the altcoin could invalidate this bearish projection. If buyers regain market dominance and increase demand, HBAR could rebound toward $0.22. Should HBAR successfully breach this resistance zone, its price could reach $0.26.