HBAR, Hedera’s native cryptocurrency, has recently experienced a setback as HBAR fails to reclaim $0.05. This price resistance has resulted in a bearish bias in the derivatives market, limiting further upside potential and possibly opening up more opportunities for short-sellers.
A Look at the Market Dynamics
The recent bearish bias in the derivatives market was signified by a decline in Open Interest rates. These rates, which track the number of contracts opened, are a reliable indicator of market sentiment and demand. As such, the dip in these rates signals a decrease in demand and a negative short-term sentiment.
In addition to this, the Cumulative Volume Delta (CVD) Spot also trended downwards, further confirming that sellers have been gaining more control in the market over the past few days. However, at the time of writing, the metric was showing sideways movement, indicating that the price could swing in either direction.
The Struggle with the $0.05 Resistance
HBAR has been struggling with the $0.05 resistance level, with sellers effectively blocking any further increase above this point. This resistance could potentially lead to further losses and create additional opportunities for short-sellers.
Despite this, there is a possibility for a strong rebound at the weekly bullish order block, which ranges from $0.0356 to $0.0444. This area had previously led to a substantial positive price reaction after June’s price drop and could potentially aid the bulls once again, especially if Bitcoin recovers from its recent losses.
Potential for Bullish Intent
On a more optimistic note, bullish intent could become a reality if HBAR manages to reclaim the $0.05 mark and flips the H4 market structure to bullish. However, the $0.052 to $0.054 resistance zone and the 50-EMA (Exponential Moving Average) are significant hurdles that the bulls would have to overcome.
The Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) recorded negative readings at press time, further reinforcing the sellers’ leverage. Without any reversal in sight, sellers might continue to attempt to lower HBAR prices.
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