Hedera Price Sinks 12%, Hits Weekly Low as Shorts Gain Momentum

Hedera’s (HBAR) value has declined by 12% over the past week. Exchanging hands at $0.26 at press time, the altcoin currently trades at its lowest level in the past seven days.

Amid the Hedera price decline, its futures traders have increasingly demanded short positions, suggesting they anticipate further price drops. 

Hedera Futures Traders Increase Short Bets 

According to Coinglass, HBAR’s Long/Short Ratio currently sits at 0.86. This ratio measures the proportion of open long positions (bets that the price will rise) to short positions (bets that the price will fall) in a market. 

A ratio of 0.86 means there are more short than long positions, with 86 long positions for every 100 short positions. This suggests a bearish sentiment, as traders are leaning toward expecting HBAR’s price to decline.

HBAR’s Long/Short Ratio. Source: Coinglass

The low activity across the HBAR futures market, evidenced by its plummeting open interest, confirms this bearish outlook. As of this writing, HBAR’s open interest is $315 million, falling 17% over the past six days.

Open interest measures the total number of active derivative contracts, such as futures or options, that have not yet been settled or closed. As in HBAR’s case, when it drops during a price decline, it signals reduced market participation as traders close their positions rather than open new ones. This reflects a weakening bearish momentum and hints at a further price drop.

HBAR Open Interest. Source: Coinglass

HBAR Price Prediction: A/D Line Indicates Selling Pressure

On the daily chart, HBAR’s falling Accumulation/Distribution Line (A/D Line) confirms the drop in its buying activity. BeInCrypto’s assessment reveals that this indicator’s value has plunged 6% over the past week.

The A/D Line is a volume-based indicator that measures money flow into or out of an asset by analyzing price movements and trading volume. A falling A/D Line suggests that selling pressure outweighs buying interest, indicating weak confidence in the asset’s price.

HBAR Price Analysis. Source:  TradingView

If HBAR’s selling pressure strengthens, its price could break below support at $0.24 and trend toward $0.16. Conversely, if the altcoin witnesses a resurgence in demand, it could drive the Hedera price up to $0.33.