HBAR Open Interest Hits All-Time High: Will the Price Follow?
Hedera (HBAR) open interest hit an all-time high after a 600% price increase over the past 30 days. This rise marks the highest level of trader interaction with the coin since its inception.
Looking ahead, several key indicators suggest that HBAR’s price rise and bullish momentum may continue. Based on this On-chain analysisthis is the next step in the development of cryptocurrency.
Hedera draws traders’ attention to Lock
A few days ago, BeInCrypto reported how HBAR open interest surges to $220 million. But as of this writing, the same metric has risen to $417.98 million, according to Glassnode. OI, as it is affectionately called, represents the total number of open positions in a contract, with each position having equal buyers and sellers.
An increase in OI indicates that traders are actively increasing their market positions, with buyers being more active than sellers, driving overall net positioning higher. Conversely, when OI decreases, it indicates that market participants are reducing their positions, thereby indicating reduced market activity.
Furthermore, the rising price coupled with increasing open interest seems to indicate that there are more bulls (buyers) than shorts (Seller). The real conclusion is that participants either increase or close their positions, and an increase in open interest usually indicates a stronger trend.
Therefore, increase altcoin OI’s recent rise suggests that HBAR’s price may soon be headed higher. At the same time, the coin’s funding rate also remains in positive territory.
A positive funding rate indicates that the contract price is trading above the index price, with long positions paying funds to short positions. Conversely, when funding rates are negative, the perpetual contract price trades at a discount to the index price, meaning short positions pay funding to long positions.
Given the current position, longs are paying funding fees to shorts, suggesting traders are betting on further price gains.
HBAR Price Forecast: Rebound Accelerates
On the 4-hour chart, The price of HBAR has broken out A descending triangle formed between December 3rd and 6th. A descending triangle is a pattern that often indicates an underlying downtrend.
It forms a descending upper trendline, indicating lower highs, and a flat horizontal trendline at lower levels, which acts as support. as Price approaches top In a triangle, a break below support usually indicates that the downtrend will continue.
However, HBAR did not break below the support level. Instead, it surged above the lowest level of the descending channel. Following this trend, the coin’s value could rise to $0.42 in the short term.
HBAR prices are likely to be higher in the long run. However, a pullback below the $0.28 support line could cause the cryptocurrency to fall further. If this happens and HBAR open interest drops, Prices may drop to $0.22.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
