The native digital currency of Hedera, HBAR, recently experienced a significant increase in Open Interest, the largest since May. Interestingly, this surge in Open Interest appears to have been largely driven by short sellers.
On the 13th of November, HBAR Futures Open Interest climbed to 61.11 million following a consistent rise starting from the 5th of November. This marked the highest level of Open Interest for the cryptocurrency since the 21st of May. Binance led the way with almost $20 million in terms of the surge in Open Interest on exchanges.
An analysis of HBAR’s price movement indicated that the growth in Open Interest initially leaned towards a bullish outlook. However, it took a turn somewhere along the way, with the cryptocurrency already heading towards a bearish trend by the time Open Interest reached its peak.
Was the HBAR Rally Unsuccessful?
Earlier this month, HBAR began on a bullish note, similar to many other top cryptocurrencies. It saw an impressive rally of 83.73% from the 5th to the 12th of November, reaching a peak of $0.077. However, the demand seemed to diminish shortly after, evident from the significant pullback that appeared to trap bulls.
Following Tuesday’s peak, HBAR retraced by as much as 26% before hitting its lowest point on Wednesday. This retracement stood out as it stayed within the short-term resistance range, indicating that the cryptocurrency was not yet poised for a substantial bullish recovery.
It is worth noting that HBAR was also overbought during this retracement. The pullback demonstrated how an increase in bullish expectations around a potential breakout from the consolidation zone led to a bull trap.
According to data on liquidations, there might have been an initial short squeeze with around $539,000 in short positions being liquidated on the 12th of November. However, the subsequent pullback resulted in over $886,000 in long positions being liquidated.
The liquidations observed for HBAR on the 12th of November marked the highest recorded in the past half-year. The trend of liquidations extended into the 13th of November, with over $620,000 worth of long positions being liquidated.
The essential question arises – Does HBAR still present an upward potential? While the recent events led to the liquidation of leveraged positions and may have deterred some potential buyers, the cryptocurrency remains appealing due to its substantial discount.
As of the latest trading session, HBAR was priced at a 66% discount from its peak in 2024. Despite experiencing a robust bullish phase in the first half of the year, reaching its pinnacle in April, the overall performance indicates sustained investor interest in the cryptocurrency.