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Open Interest in Hedera (HBAR) has reached a new record high as its price increased 600% in the past 30 days. This increase marks the highest level of trader engagement with the Token since its inception.
Looking to the future, several key indicators suggest that HBAR’s bullish momentum and bullish trend may continue. Based on this Blockchain analysis, here’s what could happen next for this cryptocurrency.
Hedera Is Getting Close Attention From Traders
A few days ago, TinTucBitcoin reported on HBAR’s Open Interest skyrocketing to 220 million USD. But at the time of writing, according to Glassnode, this index has reached 417.98 million USD. Open Interest, commonly known as OI, represents the total number of open positions in a contract, with each position having an equal buyer and seller.
An increase in open interest indicates that traders are actively increasing positions in the market, with buyers becoming more aggressive than sellers, pushing overall net positions higher. Conversely, when OI decreases, it shows that market participants are reducing their positions, signaling less market activity.
Furthermore, rising prices along with rising OI seem to indicate more buy orders than sell orders. However, the real message is that traders are either increasing or retracting positions, with rising open interest typically indicating a stronger trend.
So, this altcoin’s increase in open interest combined with the recent price increase suggests that HBAR’s price could soon trade at higher levels. Meanwhile, the Token funding rate also remains in positive territory.
A positive funded ratio indicates that the contract price is trading at a discount to the index price, with long positions paying a premium to short positions. Conversely, when the funding rate is negative, perpetual futures prices trade at a discount to the index price, meaning short positions pay a premium for long positions.
Considering the current position, long positions are paying funding fees for short positions, suggesting that traders are betting on a further price increase.
HBAR Price Forecast: Rising Momentum Will Increase
On the 4-hour chart, HBAR’s price broke above a descending triangle that formed between December 3 and 6. A descending triangle is a pattern that often indicates an underlying downtrend.
It forms with a descending upper resistance, representing lower highs, and a flat horizontal resistance at the lower level, acting as support. As price approaches the top of the triangle, a break below this support usually indicates a continuation of the downtrend.
However, HBAR did not break below the support level. Instead, it spiked above the low of the falling channel. With this trend, the Token’s value is likely to increase to 0.42 USD in the short term.
In the long term, HBAR prices could be higher. However, a pullback below the support line at $0.28 could send the cryptocurrency lower. If that happens and HBAR Open Interest decreases, the price could drop to $0.22.
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