Hedera (HBAR) has experienced a steady decline in value over the past few weeks. In the last 30 days, its price has dropped by nearly 10%. Despite this, altcoin futures investors continue to demand long positions, maintaining a bullish trend.
Futures on the Rise for HBAR
At the time of writing, Hedera (HBAR) is trading at $0.1031. The token’s price rose to $0.12 on May 17 and has since dropped by 16%. Despite the recent decline in altcoin prices, future market activities have continued to increase. Additionally, open positions have been on an upward trend since the beginning of the month. At the time of writing, HBAR’s futures open positions, which are $60 million, have increased by 18% since June 1.
A token’s futures open position can measure the total number of its outstanding futures contracts, whether closed or not. When it rises, it can signal that more participants are entering the market to open new positions. In addition to HBAR’s increasing open interest, the funding rate on cryptocurrency exchanges has also remained positive. This trend has continued since May 3, when the altcoin last recorded a negative funding rate. Funding rates are used in perpetual futures contracts to keep the contract price close to the spot price.
Demand for HBAR Futures
When a token’s futures funding rate is positive, there is strong demand for long positions. This indicates that more analysts are buying the token with the expectation of a price increase than those expecting a decline. The token’s spot market bias may be different. Many buyers and sellers were hesitant to trade HBAR due to uncertainty about the next price direction. HBAR’s price traded close to its 20-day exponential moving average (EMA), confirming that the market is in consolidation.
A token’s 20-day EMA can track its average price over the past 20 days. Trading close to this significant moving average indicates a period of sideways movement without a strong bullish or bearish trend. If the buying momentum increases due to HBAR’s futures traders’ activities, its price could rise to $0.105.
