HBAR nears $0.05 support: Will sellers crack it?

Posted: September 1, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• A daily order block and $0.0500 were crucial roadblocks for sellers.
• Funding rates and Open Interest rates were dismal and could favor sellers.

Sellers who short Hedera [HBAR] on a higher timeframe from 27 August tucked in about 8% profit as of press time. HBAR faced price rejection at a weekly bearish order block (OB) near $0.0650, which made further downward move likely. 

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In the meantime, Bitcoin [BTC] struggled to keep its recent gains after retesting the $28k level. It had eased to around $27.2k at the time of writing. If it drops below $27k, HBAR sellers could be tempted to seek more ground. 

Can sellers push lower?

Source: HBAR/USDT on TradingView

The $0.0500 was a crucial support in May, June, and July. A daily bullish order block (OB) of $0.052 – $0.053 (cyan) exists above the $0.0500 support. So, sellers faced double roadblocks. 

But if BTC drops below $27k, HBAR sellers could be emboldened to seek more gains. In such a case, late sellers could gain entry upon rejection and a confirmed retracement at $0.0500. The immediate support and next target for sellers will be the weekly bullish OB of $0.034 – $0.044 (white). 

Conversely, a daily candlestick session close above $0.0500 will invalidate the short set-up. In such a case, HBAR could re-target the $0.06 overhead resistance. 

The RSI and CMF recorded negative readings, underscoring increased selling pressure and muted capital inflows. 

HBAR recorded negative funding and Open Interest rates

Source: Coinalyze

According to Coinalyze, HBAR’s funding rates have been negative for the last few days, underscoring the bearish bias in the futures market. 

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How much are 1,10,100 HBARs worth today? 

In addition, the Open Interest rates eased from $27 million to $21 million in the past five days (24-31 August). The drop implies a decline in demand for HBAR in the futures market. 

Furthermore, the CVD (Cumulative Volume Delta) dropped further, reinforcing sellers’ market leverage. So, late sellers could wait for a drop below $0.0500 and track BTC movement before shorting the asset.