Newton Gitonga
Digital assets continue to weaken as Bitcoin hints at potential dips toward $70K.
While altcoins witnessed significant losses, Hedera (HBAR) seemed to suffer the most.
HBAR has lost more than 20% within the past seven days, and the declining demand signals more trouble for the altcoin.
Coinglass data shows HBAR’s open interest has hit yearly lows.
The metric stands at $149.69 million at press time, exploring levels not seen since November 2024.
Hedera’s fading demand
The Open Interest indicator measures yet-to-be-settled options and futures contracts.
The plunged OI highlights reduced leveraged positions as participants lose interest in the asset.
Hedera’s OI has steadily dipped from 18 January at $560.38 million to new yearly lows today.
Notably, this trend coincides with HBAR’s bearish price performance.
The altcoin has exhibited bearish tendencies lately, losing nearly 15% on its monthly chart.
Declining OI amid bearish price actions depict fading trader confidence and market participation.
The prevailing outlook shows traders closing existing positions without opening new ones.
That implies magnified selling pressures, possibly delaying HBAR’s probable recovery.
Technical signals support the downward bias.
The Chaikin Money Flow has slipped from the 7 March peak at 0.07 to -0.30 at press time.
That highlights money flowing out of Hedera’s ecosystem as investors and traders exit.
The 4H Moving Average Convergence Divergence confirms the asset’s dire situation.
The robust bearish crossover and dominant red histograms signal bear control.
Furthermore, the latest struggles sent HBAR back into the descending parallel setup.
The channel kept the altcoin in a bearish trend between 16 January and 1 March.
HBAR briefly breached the pattern’s upper boundary last week amidst increased broad market volatility.
However, dampened sentiments and demand have pushed the token back into the channel.
That hints at amplified bearish pressure, positioning Hedera for extended price declines.
Bears will likely target the support zone at $0.16 – a 20% slump from current prices of $0.1987.
HBAR’s current price outlook
Hedera displays significant bearishness as liquidations rattle the cryptocurrency industry.
It has lost over 5% within the past day to hover at $0.1987.
The notable uptick in 24-hour trading volume signals increased actions from HBAR sellers.
The prevailing performance positions Hedera for further price declines before a significant buyer resurgence.
Meanwhile, broad market sentiments remain key in determining HBAR’s near-term direction.
Analyst Ali Martinez highlighted a significant defense line for Bitcoin.
The bellwether crypto hovers beneath the 200-day MA and failure to hold above $79,829 could trigger more dips (in the near term).
A significant Bitcoin slump would mean relentless declines in the altcoin market, worsening Hedera’s condition.
However, a sudden buying momentum resurgence could rescue the altcoin from dominant downtrends.
Reclaiming $0.24 might shift HBAR’s near-term outlook to bullish.
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