Key Takeaways
On 29 August, HBARs’ price slipped by 4.75% to $0.2290, with shorts climbing to $2.96 million. A descending triangle threatened a 20% drop though. Can $3.18 million outflows truly offset short dominance?
Hedera [HBAR] has been trading sideways for the last seven days. At the time of writing, its price charts hinted at potential downside in the near term though. In fact, the broader market sentiment has remained weak. Especially since major assets such as Bitcoin [BTC] and Ethereum [ETH] also fell over the last 24 hours.
The negative outlook across the crypto market appeared to influence HBAR, pushing it towards a downside move. On 29 August, HBAR slipped by 4.75% to hit the $0.2290-level.
Despite this notable decline, however, investor and trader participation has continued to rise. These upticks coincided with the trading volume surging by 45% during the same period.
Bears pile in with $3 million in shorts
As Hedera’s price (HBAR) sank, traders doubled down on their bearish bets. For instance – CoinGlass data showed major liquidation levels clustered near $0.2249 and $0.2324.
At these levels, traders appeared to be over-leveraged, with $832k worth of long positions and $2.96 million worth of short positions. This imbalance clearly indicated that bullish strength was lacking, while bears continued to dominate.
Source: CoinGlass
Descending triangle keeps support in focus
AMBCrypto’s technical analysis on 29 August highlighted HBAR holding the key $0.226-level as support.
On the daily charts, the altcoin formed a descending triangle pattern, retesting this level more than six times with past rebounds.
Source: TradingView
However, the sentiment differed this time around, raising questions about whether HBAR would hold this level again or crash this time.
If HBAR closes a daily candle below $0.223, technicals alluded to a 20% drop towards the $0.18-zone.
Despite the price dip and bearish outlook, however, the Supertrend Indicator stayed green. At the time of writing, it seemed to be positioned below HBAR’s price – A sign of a lingering uptrend.
Meanwhile, the Relative Strength Index (RSI) stood at 43.80 – A sign that HBAR was neither overbought nor oversold. In such an environment, market sentiment along with trader and investor activity could define the altcoin’s next move.
Exchange outflows offer a lifeline?
Here, it’s worth pointing out that the only bullish cue came from token flows.
Coinglass data highlighted $3.18 million worth of HBAR leaving exchanges. Naturally, such outflows hinted at accumulation that might slow down further downside on the price charts.
Source: CoinGlass
