Digital Assets Decline

Digital assets continue to weaken as Bitcoin hints at potential dips toward $70K.

While altcoins witnessed significant losses, Hedera (HBAR) seemed to suffer the most.

HBAR’s Significant Losses

HBAR has lost more than 20% within the past seven days, and the declining demand signals more trouble for the altcoin.

Coinglass data shows HBAR’s open interest has hit yearly lows, standing at $149.69 million at press time, exploring levels not seen since November 2024.
Source – Coinglass

Hedera’s Fading Demand

The Open Interest indicator measures yet-to-be-settled options and futures contracts. The plunged OI highlights reduced leveraged positions as participants lose interest in the asset.

Hedera’s OI has steadily dipped from 18 January at $560.38 million to new yearly lows today, coinciding with HBAR’s bearish price performance.

The altcoin has exhibited bearish tendencies lately, losing nearly 15% on its monthly chart. Declining OI amid bearish price actions depict fading trader confidence and market participation.

The prevailing outlook shows traders closing existing positions without opening new ones, implying magnified selling pressures and possibly delaying HBAR’s recovery.

Technical Signals and Market Trends

Technical signals support the downward bias. The Chaikin Money Flow has slipped from the 7 March peak at 0.07 to -0.30 at press time, highlighting money flowing out of Hedera’s ecosystem.

The 4H Moving Average Convergence Divergence confirms the asset’s dire situation with robust bearish crossover and dominant red histograms.

Source – TradingView

The latest struggles sent HBAR back into a descending parallel setup, keeping the altcoin in a bearish trend. HBAR briefly breached the upper boundary last week amidst increased market volatility, but dampened sentiments have pushed it back into the channel, hinting at amplified bearish pressure.

Bears will likely target the support zone at $0.16, representing a 20% slump from current prices of $0.1987.

HBAR’s Current Price Outlook

Hedera displays significant bearishness as liquidations rattle the cryptocurrency industry, losing over 5% within the past day to hover at $0.1987. The notable uptick in 24-hour trading volume signals increased actions from HBAR sellers.

The prevailing performance positions Hedera for further price declines before a significant buyer resurgence.

Meanwhile, broad market sentiments remain key in determining HBAR’s near-term direction. Analyst Ali Martinez highlighted a critical defense line for Bitcoin, which hovers beneath the 200-day MA. A failure to hold above $79,829 could trigger more dips in the near term.

A significant Bitcoin slump would worsen Hedera’s condition, while a sudden resurgence in buying momentum could rescue the altcoin from dominant downtrends. Reclaiming $0.24 might shift HBAR’s near-term outlook to bullish.