HBAR touched multi-month lows under strong selling pressure from the bear camp

Hedera continues to face strong selling pressure, recording another price drop as traders heavily bet against this altcoin. Currently, HBAR is trading at $0.18, down 2% over the past 24 hours.

With the long/short ratio signaling a surge in short-selling demand, market sentiment is becoming increasingly pessimistic.

Bear market tightens control

The long/short ratio of HBAR has dropped to 0.86, the lowest level in a month. This reflects a strong increase in Short positions in the derivatives market.

HBAR Long/Short Ratio | Source: CoinglassThe long/short ratio measures the ratio of Long (positions betting on price increase) to Short (positions betting on price decrease) in the market. A ratio below 1 indicates more Short positions than Long positions. This suggests that traders predominantly have a negative view on HBAR, increasing the likelihood of further price decline.

Furthermore, the Chaikin Money Flow (CMF) indicator on the daily chart of HBAR also reinforces this bearish outlook. This indicator measures the inflow and outflow of money from the asset, currently at a negative level of -0.10 at the time of writing.

CMF of HBAR | Source: TradingViewThe negative CMF of HBAR indicates high selling activity, with the sellers dominating the market and trying to push the price lower.

Trader HBAR is preparing for volatility as the price fluctuates around key support levels

The increasing demand for Short positions reflects investors' expectations of a continued downtrend, raising concerns about HBAR's ability to maintain support at the important level of $0.17.

If this level cannot be maintained, the price of HBAR could plummet to the lowest level in many months, $0.11, last seen in November.

However, the increasing demand for this altcoin could invalidate the price drop forecast. If the bull camp regains market control and boosts buying pressure, HBAR could recover to $0.22.

HBAR/USDT daily chart | Source: TradingViewIf the price successfully breaks through this resistance area, it could rise to $0.26.

Disclaimer: The article is for informational purposes only, not investment advice. Investors should research carefully before making decisions. We are not responsible for your investment decisions.

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