Short Sellers Dominate HBAR Futures as Price Eyes Sub-$0.20 Level

HBAR’s price has struggled to maintain momentum after reaching a four-year high of $0.41 on January 17. Since then, the token has been on a steady downtrend, shedding 39% of its value. 

The altcoin risks slipping below the critical $0.20 mark as short traders dominate the futures market.

Hedera Short Traders Call the Shots

HBAR’s long/short ratio highlights the bearish bias against the altcoin in its futures market. At press time, the metric stands below one at 0.98.

This ratio compares the number of long positions (bets that the price will rise) to short positions (bets that the price will fall) in a market. When an asset’s long/short ratio is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.

Conversely, as with HBAR, when the ratio is below one, more traders are betting on a price decline. This suggests a strong bearish sentiment in the market, with expectations of further downside.

Notably, technical indicators reinforce this outlook. HBAR trades below its Ichimoku Cloud on the daily chart, indicating poor demand and downward momentum. 

The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades below this cloud, it reflects the downtrend. In this scenario, the cloud acts as a dynamic resistance zone, reinforcing the likelihood of continued decline if the price remains below it.

HBAR Price Prediction: Weak Buying Pressure Could Push It to $0.14

The setup of HBAR’s Moving Average Convergence Divergence (MACD) confirms the low buying pressure among its traders. At press time, the MACD line (blue) rests below the signal (yellow) and zero lines.

An asset’s MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines. When set up this way, selling activity dominates the market, hinting at further price drops.

If HBAR selloffs continue, its price could drop to $0.20. If bearish pressure gains momentum at this point, its value could decline further to $0.14, a low last reached in November. 

On the other hand, if the bulls regain dominance and drive up the demand for the altcoin, HBAR’s price could climb to $0.32.