HBAR Bears in Control: Can Hedera (HBAR) Hold Above the $0.20 Support Level?

Over the past week, Hedera has recorded steady outflows from its spot market, signaling a lack of confidence among market participants.

Hedera (HBAR) has recorded a lack of inflows into its spot market over the past week, signaling a bearish market sentiment.

According to data from Coinglass, the altcoin has seen a total outflow of over $17 million in the past seven days, with only one day, January 19, recording an inflow of $1.78 million.

Investors are withdrawing their capital from HBAR’s spot markets, which usually indicates a weakening demand and selling pressure, potentially driving the asset’s price down.

HBAR’s consistent outflows suggest a bearish market sentiment as traders prefer to exit their positions rather than accumulating more of the asset.

Moreover, the token’s negative weighted sentiment further confirms this bearish market sentiment.

According to Santiment, the on-chain metric, which analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency, has returned only negative values all week, reflecting a lack of optimism among HBAR holders about its future performance.

As of this writing, the token’s weighted sentiment is -0.61. When this metric’s value is negative, it indicates that overall market sentiment regarding the asset is bearish, with more negative discussions and outlooks outweighing positive ones. It hints at the likelihood of an extended price decline as traders remain unmotivated to open more trades.

BeInCrypto’s analysis of HBAR’s performance on the daily chart reveals that since reaching a four-year high of $0.40 on January 17, it has trended below a descending trend line, confirming its price decline. Exchanging hands at $0.21 at press time, the token’s value has since plummeted by 48%.

When an asset trades below a descending trend line, it indicates a sustained downtrend, where selling pressure consistently exceeds buying activity. This suggests that HBAR struggles to rally above resistance, reinforcing the likelihood of a further price dip. If the struggle continues, its price could drop below the $0.20 price zone to trade at $0.17.

On the other hand, a resurgence in demand will invalidate this bearish projection. HBAR’s price could break above the descending trend line and climb to $0.26 if that happens.