The digital asset, Hedera Hashgraph (HBAR), experienced a drop of 7.9% within a 24-hour period, coupled with a 20% surge in daily trading volume. This surge in volume highlighted an increase in selling pressure on the token, resulting in a breakdown of the local support level.
An analysis of the Long/Short Ratio by Taker Buy/Sell Volume revealed that 56.5% of the taker volume was attributed to sellers, indicating a prevailing bearish sentiment over the past 24 hours, coinciding with a retest of the $0.223 level as resistance.
HBAR Slides Below $0.223, Signifying Elevated Volatility
Following significant losses earlier in February, Hedera Hashgraph’s prices stabilized above the $0.223 mark, a key support level that also represented the 61.8% retracement level from the November rally.
During a consolidation phase, the trading volume contracted, and the Bollinger Bands constricted around the price action.
While the Chaikin Money Flow (CMF) predominantly remained within neutral territory, Bitcoin’s price ranged between $95.5k and $98k.
Recent momentum shifts have leaned towards a bearish outlook, with altcoins experiencing a downtrend while BTC remained relatively stable.
Notably, the HBAR Awesome Oscillator displayed a bearish crossover, with the CMF dipping below -0.05. Concurrently, the Bollinger Bands expanded in response to escalating losses.
Since breaching the $0.223 support level, Hedera Hashgraph’s prices have tumbled by slightly over 8% in less than 48 hours.
Forecasts suggest that this short-term downtrend is likely to persist, potentially leading HBAR to retest $0.176 as a support level in the coming days. With Bitcoin approaching a support level at $94k, a brief price rebound for HBAR might materialize.
Data extracted from Santiment revealed bearish social metrics associated with HBAR.
Social Dominance, a metric gauging the token’s volume concerning 50+ prominent cryptocurrencies discussed on social platforms, has been on a decline since mid-January.
Moreover, Weighted Sentiment has exhibited consistent bearish sentiment since mid-December.
In summary, the prevailing short-term market structure signals a cautious stance for bulls. Long positions are counter to the primary trend, thus carrying increased risk and suiting more aggressive traders, especially scalpers.
Disclaimer: The opinions expressed are solely those of the writer and do not constitute financial, investment, trading, or any other form of advice.