HBAR, the crypto asset of Hedera Hashgraph, has displayed a sideways trend for the past four days. Despite the overall market uptrend, HBAR’s value declined by 2% over the last 24 hours, sparking a notable pessimistic sentiment among traders.
Capital Outflows and Price Pressure on HBAR
Capital outflows in HBAR’s spot market have imposed significant selling pressure on the asset. Data from Coinglass suggests a total of $6.42 million exited the market in three days, indicating a cautious approach by investors towards HBAR in the short term.
Typically, capital outflows occur when investors liquidate their assets and redirect their funds to other sectors. This trend suggests diminishing demand for HBAR, potentially causing its prices to decline. Analysts highlight the three-day trend of daily outflows as an indication of persistent uncertainty and indecision surrounding HBAR.
The Coinglass report stated, “Continuous outflows in HBAR indicate a shift to the selling side and rising uncertainty in the market.”
Continuing Declines in Market Indicators
Technical indicators further confirm the weakening of HBAR. Notably, the Chaikin Money Flow (CMF) indicator on daily charts shows a negative trend, standing at -0.07 and trending downward as of the report’s publication.
The technical analysis on HBAR mentioned, “The negative CMF reading reflects dwindling buying interest and escalating selling pressure.”
The CMF indicator helps measure the asset’s buying and selling pressure within a specific period. While a positive CMF value indicates increased fund inflow, transitioning to negative values signals rising selling pressure. The current negative indication for HBAR suggests investors are in an exit mode, intensifying price pressure.
Experts note that HBAR is trading within a horizontal band, and if the ongoing selling wave continues, the asset might dip below its current support level at $0.2591.
An expert in technical analysis commented, “If selling pressure persists, HBAR might retreat to the $0.2591 support.”
Currently, HBAR trades at $0.2663, just below the upper band of $0.2667. Should selling pressure escalate, investors expect the price to decline to $0.2591.
However, according to some experts, if buying interest experiences recovery, HBAR’s price may break through the resistance level and rise to $0.2905. Such a scenario could renew investor interest and change the price direction.
