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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- HBAR faced price rejection at $0.05 resistance.
- Bearish bias was recorded in the derivatives market.
Hedera [HBAR] could contend with the $0.05 resistance in the short term as sellers blocked any further upside above the level. Such a move could make further losses likely and give short-sellers extra opportunities.
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Meanwhile, Bitcoin [BTC] price action remained unchanged near the range-low of $25.8k ahead of next week’s (20 September) Fed rate decision. A surge in market volatility was likely before and after the decision, and here are key levels to consider for HBAR’s price action.
Will bulls defend the $0.040 – $0.045 area?
Source: HBAR/USDT on TradingView
On the zoomed-out H4 chart, the white area of $0.0356 – $0.0444 is a weekly bullish order block. Above the weekly bullish OB exists a previous low of $0.0456.
So, sellers could extend gains to $0.0460, $0.0456 and the weekly bullish OB of $0.0356 – $0.0444 if the bearish pressure persists in the next few hours/days.
However, we could expect a strong rebound at the weekly bullish OB. The area led to a solid positive price reaction after June’s price dump and could come to the bull’s rescue again, especially if BTC recovers from recent losses.
On the upside, bullish intent could be feasible if HBAR reclaims $0.5 and flips the H4 market structure to bullish. However, the $0.052 – $0.054 resistance zone and the 50-EMA (Exponential Moving Average) are critical roadblocks to consider for bulls.
The RSI and CMF recorded negative readings at press time, reinforcing sellers’ leverage. With no reversal at publication time, sellers could attempt to lower HBAR prices.
Bearish bias in the derivatives segment
Source: Coinalyze
The derivatives market was firmly bearish at press time, as demonstrated by the declining Open Interest (OI) rates. The Open Interest rates track the number of contracts opened.
How much are 1,10,100 HBARs worth today?
It also indicates demand and overall market sentiment. So, the decline captures a dip in demand and negative short-term sentiment.
Similarly, the CVD (Cumulative Volume Delta) Spot also edged lower, reinforcing the fact that sellers gained more market control in the past few days. But the metric was sideways at press time, meaning the price could go either direction.