HBAR, the native Cryptocurrency of the Hedera Hashgraph network, has increased sharply by 8% over the past 24 hours. This rally comes after several days of decline, after the altcoin hit a three-year high of $0.39 on December 3.
However, the 8% increase in HBAR in the past 24 hours only reflects the general recovery of the market. The overwhelming bearish trend remains significant, putting the currency at risk of falling again. This analysis explores the reasons behind.
Pressure From Hedera’s Sellers
The Hedera Token price has recorded an 8% increase in the past 24 hours, while trading volume decreased by 21%. Rising price on decreasing volume is often interpreted as a bearish divergence — a potential sign to be cautious about continuing the uptrend.
This pattern suggests that speculative buying, rather than real demand, is driving prices up, making the case for a hold appear dim.
The activities surrounding HBAR are reflected in the sharp decline in open bets in the derivatives market. At the time of writing, this figure is $292 million, down 38% in the past five days. A decline in open bets indicates that fewer contracts are being traded or held, which typically suggests a decline in market participation or a lack of investment confidence in the asset.
Furthermore, the overall market sentiment towards HBAR remains bearish, as reflected by its negatively weighted sentiment index. According to Santiment, the index has shown only negative values since HBAR fell from its three-year peak on December 4. As of now, the index stands at -0.13.
The index in this series measures the overall sentiment of social media mentions of an asset, considering both the volume and polarity of comments. Negatively weighted sentiment indicates that the majority of social media mentions are negative, indicating pessimistic sentiment towards the asset.
HBAR Price Prediction: Major Resistance to Overcome
On the one-day HBAR/USD chart, the Awesome Oscillator supports the bearish view, with the past five days showing only red histogram bars. This indicator gauges market momentum, and red bars signal weakening bullish momentum or increased bearish pressure.
Currently trading at $0.30, HBAR could fall to $0.25 if selling pressure intensifies.
Conversely, if market sentiment turns from bearish to bullish, the Hedera Token price could overcome resistance at $0.31 and attempt to retake the three-year high of $0.39.