Despite a temporary cooling in Hedera's market, traders remain bullish on HBAR, and here's why:
Hedera's Minor Dip and the Bullish Outlook
After a slight 1% dip in the past 24 hours, Hedera Hashgraph (HBAR) seems to be veering slightly from the broader market's bullish momentum. Following a period of price consolidation, the current situation may set the stage for a renewed upward move.
On-chain indicators suggest that bullish sentiment could be returning to the HBAR market. With waning selling pressure, there's a possibility that the altcoin could breach the $0.20 price mark in the near term.
Traders' Interest in HBAR Circles the $0.203 Level
HBAR's liquidation heatmap exhibits a significant concentration of liquidity at the $0.203 price region. This area is crucial for traders, as it helps identify regions where large numbers of leveraged positions are likely to be liquidated if the price reaches certain thresholds.
These zones often serve as magnets for price action, as the market tends to move toward these areas to trigger liquidations and provide opportunities for fresh positions. Hence, the concentration of significant liquidity at the $0.203 price region suggests strong interest among traders to either buy or close short positions in the vicinity. This arrangement fosters the potential for a price rally in the near term.
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Additionally, HBAR's funding rate remains positive even during its lackluster price performance. At the moment, it stands at 0.027%, reflecting ongoing demand for long positions.
The funding rate is a recurring payment exchanged between traders holding long and short positions on perpetual futures. As a rule, it maintains the futures contract price close to the underlying asset's spot price.
When its value is positive, such as in the current scenario, long traders pay those holding short positions, which generally denotes a bullish outlook, as they bet on prices rising.
HBAR Aims for $0.23 as Buying Pressure Builds
On the daily chart, HBAR's Chaikin Money Flow (CMF) shows a slight increase today, confirming the return of buying pressure. Currently, the CMF is at 0.06.
This indicator measures the net flow of money into and out of an asset. A positive CMF value suggests that buying volume surpasses selling volume, signaling investor accumulation.
For HBAR, this trend strengthens the idea that demand for the token is increasing, despite the recent price consolidation. If this trend continues, HBAR's price could reach $0.23.
However, HBAR's price could plummet below $0.19 if selling pressure strengthens.
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- Traders are closely watching the $0.203 level in HBAR as it exhibits a significant concentration of liquidity, which could trigger a price rally with the potential for fresh positions.
- The positive HBAR funding rate, currently at 0.027%, indicates ongoing demand for long positions, suggesting a bullish outlook as traders bet on prices rising.
- Following a slight increase in the Chaikin Money Flow, HBAR's buying pressure is returning, suggesting that demand for the altcoin is increasing, potentially pushing the price towards $0.23.
- On the other hand, if selling pressure strengthens, the price of HBAR could plummet below the $0.19 mark.