Hedera Hashgraph’s native token HBAR slid after climbing to $0.2548 on Sunday to a 20-day high as traders begin to shrink their positions.
Tokens trading at $0.2357 at press time have fallen about 5% from their recent peak. Both on-chain and technology metrics point to limit influx, strengthening bearish sentiment and increasing the likelihood that HBAR prices will be extended.
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Hbar’s rally stalls as traders come out and short positions surge.
Since the price decline began on Sunday, HBAR’s Money Flow Index (MFI) has also slowly declined, highlighting a slower token accumulation across the market.
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MFI indicators guide capital strength into assets by tracking prices and trading volumes. It climbs when traders are actively accumulating, indicating increased liquidity and stronger buy-side demand.
In contrast, as investors reduce their exposure, the decline in MFI reflects a weaker inflow. Therefore, a decrease in the MFI of HBAR indicates that accumulation has slowed significantly since the 20-day peak, exposing AltCoin to additional downside pressure.
Furthermore, Coinglass data shows a bearish slope in the positioning of derivatives that support the negative outlook mentioned above.
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According to on-chain data providers, the long/short ratio of HBAR continues to decline, indicating traders are increasingly betting on tokens. At the time of writing, this is 0.86.
The long/short ratio measures the balance between bullish and bearish positions. Over one means that more traders expect prices to rise, but ratios below one like HBAR indicate that most bet on further declines.
This shows stronger bearish feelings and hopes for continued downsides.
Hbar Bears tightens the grip but still plays a $0.2762 rebound
With capital inflows running out and short demand, HBAR appears to be vulnerable to further losses in the short term. Unless new purchase support appears to offset the bearish trend, the token price could drop to $0.2123 over the next few trading sessions.
However, if the Bulls regain control and accumulation resumes, HBAR could reverse that decline and rise to $0.2762.
