HBAR Price Reversal Confirms Short Setup Emerging

The price reversal, confirmed by multiple indicators and supported by rising open interest followed by a sharp decline, has led some traders to anticipate a short setup emerging in the short term.

The price reversal in Hedera (HBAR), confirmed by multiple indicators and supported by rising open interest followed by a sharp decline, has led some traders to anticipate a short setup emerging in the short term.

As market participants keep an eye on how HBAR responds to nearby resistance and whether downside continuation could test lower support zones, one trader is highlighting a short-term trade emerging on lower timeframes as the broader trend shifts.

This analysis, shared by BullFrog Crypto, focuses on the 30-minute HBAR/USDT chart and suggests a short bias with a suggested entry point around $0.19552.

This trade is set up by a breakdown from a previously established consolidation range, now acting as resistance. This shift in market structure is supported by the emergence of lower highs and lower lows, typical characteristics of a developing downtrend. The annotated trendline labeled “SHORT FOLLOW THE LINE” aligns with this move, suggesting a continuation to the downside.

Source:X

This analysis also notes a key supply zone, highlighted by a grey rectangle, where the price consolidated before its sharp decline. This area is now seen as a potential rejection zone if the apex of the move sees the price bounce back up.

Short positions around the supply zone would target possible supports near $0.185–$0.180, aligning with prior reaction levels. This short-term trade setup is suited for traders working on lower timeframes, potentially with some leverage to amplify returns on the trade that may play out over several hours.

The risk is clearly defined, with a tight invalidation point just above the resistance zone, allowing for controlled exposure and a clear decision point for traders to minimize losses if the trade doesn't materialize as expected.

Long Positions Liquidated As Open Interest Drops Steely

Further supported by recent open interest data visualized by Bitscreener, the 1-hour HBAR/USDT chart highlights a steeper decline after a period of strong ascent.

The price experienced a notable upswing, seen in purple, from May 19 to May 23, rallying from a local low into a peak, ultimately reaching as high as $0.20866. However, this move was met with significant resistance at the $0.20 level, leading to a subsequent steep price drop, seen in orange, on May 24 and 25.

During this same period, open interest, displayed in blue, rose sharply to approximately $5.8 million, suggesting increased leveraged exposure and bullish positioning.

However, the sudden drop in open interest following the price peak—falling to below $4.1 million by May 25—suggests widespread liquidation or closing of long positions. This behavior is typical of a “long squeeze,” where traders holding leveraged long positions are forced to exit as price reverses against them.

The steep decline in both price and open interest underscores the weakness in bullish conviction and highlights the caution currently observed among market participants. The lack of recovery in open interest suggests muted participation, which may contribute to continued volatility if no new buying support emerges.

This view is further supported by the 24-hour chart from Brave New Coin, which confirms short-term bearish momentum in the broader time frame.

HBAR is currently trading at $0.188433, reflecting a -1.75% drop in the last 24 hours. Intraday action included a brief rise to touch $0.191, followed by steady declines to lows around $0.186, with slight recovery late in the session.

Source: BraeNewCoin

Trading volume reached $109.72 million, indicating moderate activity but not enough to suggest an imminent reversal. This pattern reflects profit-taking and general market caution, with the selling pressure currently outweighing demand.

This narrative is supported by the weekly chart on TradingView, where HBAR closed at $0.18822, marking a -4.43% drop for the week, with momentum indicators showing weakness. The MACD histogram remains negative at -0.00591, and the MACD line continues to trend below the signal line, confirming ongoing bearish momentum.

Source: TradingView

Meanwhile, the RSI sits at 50.03, reflecting a neutral stance but trending lower. Without a decisive move above the $0.20–$0.21 resistance zone, the price may continue its slow descent or remain range-bound under key resistance levels.

Overall, Hedera is facing short-term technical weakness with reduced open interest and bearish indicators confirming downside risk. A confirmed break below recent support could open the door for further retracement unless new buyers enter the market with volume-backed strength.