The value of Hedera (HBAR) has dropped 12% over the past week and is trading at $0.26 at the time of writing, its lowest level in the past seven days.
Amid the fall in Hedera’s price, an increasing number of futures traders are calling for short positions, indicating they expect the price to continue falling.
Hedera futures traders increase short positions
According to Coinglass, HBAR’s Long/Short Ratio is currently at 0.86. This ratio measures the percentage of open long positions (bets that the price will rise) compared to short positions (bets that the price will fall) in the market.
A ratio of 0.86 means there are more short positions than long positions, with 86 long positions for every 100 short positions. This shows negative sentiment, as traders are leaning into expecting HBAR’s price to fall.
Low activity in the HBAR futures market, evidenced by a decline in open interest, confirms this negative outlook. Up to this point, HBAR’s open interest is 315 million USD, down 17% in the past six days.
Open interest measures the total number of outstanding derivative contracts, such as futures or options contracts that have not yet been settled or closed. As in the case of HBAR, when it falls amid bearish prices, it sends a signal to reduce market participation as traders close positions instead of opening new ones. This reflects a weakening of negative momentum and hints at the possibility of further price declines.
HBAR price prediction: A/D line shows selling pressure
On the daily chart, HBAR’s Accumulation/Distribution Line (A/D Line) is falling confirming a decline in buying activity. TinTucBitcoin’s assessment shows that the value of this indicator has decreased by 6% over the past week.
The A/D line is a volume-based indicator that measures the amount of money being pumped into or out of an asset by analyzing price movements and trading volume. A falling A/D line shows that selling pressure prevails over buying interest, indicating weakening confidence in asset prices.
If the selling pressure of HBAR strengthens, its price could fall below the $0.24 support and trend towards the $0.16 level. Conversely, if the altcoin experiences a recovery in demand, Hedera price could rise to $0.33.