HBAR Flashes a Familiar 40% Warning, But Positioning Hints at a Different Outcome

Hedera (HBAR) has dropped astir 3.5% successful the past 24 hours, adjacent arsenic it holds astir 6% play gains. This reflects a increasing struggle betwixt buyers and sellers. Now, a acquainted HBAR terms informing motion has appeared again.

The aforesaid signal, rather recently, triggered a 40%+ crash. But this time, trader positioning, request strength, and method enactment levels suggest the result whitethorn not unfold the aforesaid way.

Hedera is presently trading wrong a falling wedge signifier connected the regular chart. A falling wedge forms erstwhile the terms moves betwixt 2 downward-sloping trendlines that dilatory converge. This operation often signals a aboriginal breakout due to the fact that selling unit gradually weakens.

HBAR’s caller play gains bespeak this betterment attempt. The terms has been pushing toward the precocious absorption of the wedge. This shows buyers are trying to regain control.

However, different awesome beneath the aboveground shows a warning. Between November 23 and February 17, Hedera’s terms made a little high. This means the betterment failed to scope the erstwhile peak. But during the aforesaid period, the Relative Strength Index, oregon RSI, a momentum indicator, made a higher high.

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This is called a hidden bearish divergence. A hidden bearish divergence shows that sellers stay successful power during a recovery. Momentum rises, but terms fails to scope a higher high. This usually signals that the broader downtrend whitethorn continue.

This aforesaid awesome appeared earlier betwixt November 23 and January 14. That informing was followed by a crisp 44% crash. This past raises the hazard that Hedera could look different pullback. But this time, cardinal underlying conditions look precise different.

The erstwhile clang was fueled by excessive bullish positioning.

On January 14 (when the past divergence finalized), Hedera’s unfastened involvement stood adjacent $68 million. Open involvement measures the full worth of progressive futures positions. High unfastened involvement means galore traders are utilizing leverage. At the aforesaid time, backing rates were positive. Positive backing means astir traders were betting connected higher prices.

This created a unsafe situation. When the terms started falling, agelong traders were forced to adjacent positions. This triggered liquidations that accelerated the crash. Today, the operation looks different.

Open involvement is present astir $61 million, little than the erstwhile peak, adjacent though HBAR keeps play gains. More importantly, backing rates stay negative. Negative backing means traders are not aggressively betting connected terms increases.