HBAR, the crypto asset of Hedera Hashgraph, has shown a sideways movement over the past four days, despite the overall market trend. Its value has declined by 2% in the last 24 hours, resulting in notable pessimism among traders.
Capital Outflows and Price Pressure on HBAR
Capital outflows in HBAR's spot market have imposed significant selling pressure on the asset. Data from Coinglass indicates that a total of $6.42 million exited the market over three days, reflecting a cautious stance by investors towards HBAR in the short term.
Typically, capital outflows occur when investors liquidate their assets and redirect their funds to other sectors. This trend suggests a diminishing demand for HBAR, which could lead to a decline in its prices. Analysts highlight the three-day trend of daily outflows as an indication of persistent uncertainty and indecision in the market.
CITE_NA: "Continuous outflows in HBAR indicate a shift to the selling side and rising uncertainty in the market."
Continuing Declines in Market Indicators
Technical indicators further confirm the weakening of HBAR. Notably, the Chaikin Money Flow (CMF) indicator on daily charts shows a negative trend, standing at -0.07 and trending downward as of the report's publication.
CITE_NA: "The negative CMF reading reflects dwindling buying interest and escalating selling pressure."
The CMF indicator helps measure the asset’s buying and selling pressure within a specific period. While a positive CMF value indicates increased fund inflow, transitioning to negative values signals rising selling pressure. The current negative indication for HBAR suggests investors are in an exit mode, intensifying price pressure.
Future Prospects for HBAR
Experts note that HBAR is trading within a horizontal band, and if the ongoing selling wave continues, the asset might dip below its current support level at $0.2591.
CITE_W_A: "If selling pressure persists, HBAR might retreat to the $0.2591 support."
Currently, HBAR trades at $0.2663, just below the upper band of $0.2667. Should selling pressure escalate, investors expect the price to decline to $0.2591.
However, according to some experts, if buying interest experiences recovery, HBAR’s price may break through the resistance level and rise to $0.2905. Such a scenario could renew investor interest and change the price direction.
HBAR is facing multiple challenges in the current market, with capital outflows and negative technical indicators; however, a shift in investor sentiment could reveal new opportunities for price recovery.
