Hedera prices are at weekly lows as selling pressure intensifies.
The price of Hedera (HBAR) fell 12% last week. Exchanging hands at $0.26 at press time, the altcoin is currently trading at its lowest level in the past seven days.
Amid the bear market decline, futures traders have increasingly requested short positions, suggesting they expect further price declines.
Hedera futures traders add short bets
According to Coinglass, HBAR's Long/Short Ratio currently sits at 0.86. This ratio measures the ratio of open long positions (bets that the price will go up) to short positions (bets that the price will go down) in the market.
A ratio of 0.86 means there are more short than long positions, for every 100 short positions there are 86 long positions. This indicates a bearish sentiment as traders are expecting the HBAR price to drop.
Low activity in the HBAR futures market, evidenced by declining open demand, confirms this bearish outlook. As of this writing, HBAR's open interest is $315 million, down 17% over the past six days.
Open interest measures the total number of active derivative contracts, such as futures or options, that have not yet been settled or closed. As in the case of the HBAR, when it declines during a bear market, it indicates a decrease in market participation as traders close their positions rather than open new ones. This indicates weakened bear momentum and hints at further price declines.
HBAR Price Forecast: A/D line shows selling pressure
On the daily chart, HBAR's falling stock/distribution line (A/D line) confirms that the buying activity has declined. BeInCrypto's review shows that the price of this indicator has decreased by 6% in the last week.
The A/D line is a volume-based indicator that measures the flow of money into or out of an asset by analyzing price movements and trading volume. A falling A/D line suggests that selling pressure is greater than buying interest, indicating weak confidence in asset prices.
If HBAR's selling pressure intensifies, the price may break below support at $0.24 and move towards $0.16. On the contrary, if the altcoin witnesses a resurgence in demand, it could bring the price of Hedera up to $0.33.
Disclaimer
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