Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The chances of HBAR withdrawal are strong.
- This does not mean that shorting the asset is a viable idea.
Hedera experienced a 93.8% decline from its high of $0.576 in November 2021 to its low of $0.0356 in December 2022. Since reaching this low, the price has found steady demand. The rally over the past six weeks has coincided with a rally for Bitcoin, which has fueled capital and hope in the altcoin market.
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It was unclear how much higher HBAR can go. $0.1 and $0.12 are levels to watch in the coming days. However, HBAR bulls can wait for a pullback in an area of interest rather than succumb to FOMO.
Inefficiency to cover HBAR after three days of green
On the daily chart, it can be seen that HBAR has left some inefficiencies in its path over the past couple of months. While smaller imbalances were not covered, an obvious and large one witnessed a reversal recently.
This FVG extended from $0.062-$0.069. This area also served as resistance from September to early November 2022. In the past two months, the price broke the bullish market structure when it bounced above $0.05 on January 14.
How much are 1, 10 and 100 HBAR worth?
The price faced rejection at $0.07, and recovered to close the gap at $0.062. After two weeks of consolidation around $0.067, the bulls beat the sellers.
At the time of writing, HBAR was trading at $0.094. But the strong recent move left a similar FVG at $0.08. Hence, a pullback to this area is what the bulls can expect. The daily RSI began to form a bearish divergence with the price. However, OBV remained in a sharp uptrend,
Bears want to fade the rally, but demand remained strong
On the 1-hour chart, prices and open interest were in a strong uptrend. The CVD point also rose sharply. Together they signaled strong capital inflows into the market and underscored bullish strength.
The projected funding rate has dipped into negative territory several times in recent days. At the same time, negative positions saw a decent chunk of liquidations. Hence, it showed that market participants tried to fade the rally but were punished.
As things stand, it was risky to short HBAR unless it was an intraday scalp trade. The higher time frame structure remains bullish. A drop below $0.08 and $0.06 will turn the structure bearish.