HBAR Slips Toward Multi-Month Low Amid Rising Short Interest

​​Hedera remains under heavy pressure, marking yet another day of decline as traders continue to bet against the altcoin. It trades at $0.18 at press time, noting a 2% price drop over the past 24 hours. 

With its long/short ratio signaling a surge in short interest, market sentiment has turned increasingly pessimistic.

Short Sellers Tighten Grip on HBAR

HBAR’s long/short ratio has dropped to 0.86, its lowest level in a month. This reflects a sharp increase in short positions among derivatives traders. 

HBAR Long/Short Ratio. Source: Coinglass

The long/short ratio measures the proportion of long positions (bets on price increases) to short positions (bets on price declines) in the market. A ratio below one means there are more short positions than long ones. This indicates that traders are predominantly bearish on HBAR and hints at a higher likelihood of continued downside movement.

Further, HBAR’s negative Chaikin Money Flow (CMF) on the daily chart supports this bearish outlook. This indicator, which measures how money flows into and out of the asset, is below zero at -0.10 when writing. 

HBAR CMF. Source: TradingView

HBAR’s negative CMF reading suggests high selling activity, with its sellers dominating the market and looking to push prices lower.

HBAR Traders Brace for Volatility as Price Flirts with Key Support Levels

The growing demand for short positions highlights investors’ expectations of further downside, raising concerns about HBAR’s ability to hold above the critical support level formed at $0.17. 

If it fails to hold, the token’s price could plummet to a multi-month low of $0.11, which it last traded at in November.

However, a resurgence in demand for the altcoin could invalidate this bearish projection. If buyers regain market dominance and increase demand, HBAR could rebound toward $0.22. 

HBAR Price Analysis. Source: TradingView

Should HBAR successfully breach this resistance zone, its price could reach $0.26.

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