Despite a recent 10% price drop to $0.1031 from a peak of $0.12 on May 17, Hedera (HBAR) remains bullish among futures traders. Open interest in HBAR futures has surged 18% since June 1, indicating strong market participation and optimism.
The positive funding rates observed since May 3 indicate robust demand for long positions, potentially propelling HBAR’s price upwards towards $0.105. However, there is also the possibility of increased selling pressure, which could exert downward pressure on the price, potentially driving it towards $0.09.
Hedera (HBAR) Futures Traders Maintain Bullish Sentiment
Hedera (HBAR) has faced a notable decline in value over the past month, dropping by nearly 10% to its current price of $0.1031 from a peak of $0.12 on May 17. Despite this downturn, futures traders have shown a strong bullish inclination toward the altcoin, primarily favoring long positions.
Throughout June, HBAR’s futures open interest has seen a significant uptick, rising by 18% to $60 million as of the latest data. This surge in open interest indicates heightened market activity and continued optimism among traders.
Hedera Open Interest. Source: Coinglass
Futures open interest reflects the total number of outstanding futures contracts that have not yet been closed or settled. A rising open interest suggests an influx of new positions being opened in the market.
Furthermore, HBAR has maintained positive funding rates across various cryptocurrency exchanges since early May. This ongoing positivity in funding rates underscores robust demand for long positions. It indicates that more traders are entering positions anticipating HBAR’s price to rise rather than expecting a decline.
Hedera Funding Rate. Source: Coinglass
Positive funding rates are crucial in perpetual futures contracts to align the contract price closely with the spot price of the asset, ensuring market stability and accurate pricing.
Overall, despite recent price declines, the bullish sentiment among futures traders suggests continued optimism and potential upward momentum for Hedera (HBAR) in the near term.
HBAR’s Current Market Conditions and Price Outlook
In the spot market, Hedera (HBAR) is experiencing a cautious sentiment among traders, with many buyers and sellers refraining from active trading due to uncertainty about the token’s next price direction.
As of the latest update, HBAR’s price is trading closely around its 20-day exponential moving average (EMA), indicating a period of consolidation in the market. The 20-day EMA reflects the average price of HBAR over the past 20 days. When the price hovers near this moving average, it suggests that the market is in a phase of sideways movement, lacking a clear uptrend or downtrend.
Hedera Price Analysis. Source: TradingView
Looking ahead, if buying momentum strengthens, potentially fueled by activity among HBAR’s futures traders, the token’s price could see a rally up to $0.105. Conversely, increased selling pressure and bearish sentiment could push HBAR’s price down to $0.09.
Hedera Price Analysis. Source: TradingView
These potential price movements highlight the current uncertainty in HBAR’s spot market and underscore the significance of monitoring market sentiment and technical indicators like the 20-day EMA for future price trends.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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