Hedera Cools Off, But Here’s Why Traders Are Still Going Long on HBAR

Hedera has slipped by 1% in the past 24 hours, diverging slightly from the broader market’s bullish momentum. This minor dip comes after a few days of price consolidation, potentially setting the stage for a renewed upward move.

On-chain indicators suggest that bullish sentiment may be returning to the HBAR market. With waning selling pressure, the altcoin might successfully chart its course above the $0.20 price mark in the near term.

Hedera Traders Bet on Upside 

HBAR’s liquidation heatmap indicates a significant concentration of liquidity at the $0.203 price region. Traders use liquidation heatmaps to identify areas where large numbers of leveraged positions are likely to be liquidated if the price reaches certain thresholds.

Such zones often act as magnets for price action, as the market tends to move toward these areas to trigger liquidations and allow fresh positions to open.

Therefore, for HBAR, the concentration of significant liquidity at the $0.203 price region indicates a strong interest from traders to buy or close short positions around that level. This sets the stage for a potential price rally in the near term.

Furthermore, HBAR’s funding rate remains positive amid its lacklustre price performance. At press time, it stood at 0.027%, reflecting ongoing demand for long positions.

The funding rate is a periodic payment exchanged between traders holding long and short positions on perpetual futures. It is designed to keep the contract price close to the underlying asset’s spot price.

When its value is positive like this, long traders pay those holding short positions, a bullish signal suggesting they expect prices to rise.

HBAR Eyes $0.23 as Buying Pressure Builds

On the daily chart, the slight uptick in HBAR’s Chaikin Money Flow (CMF) today confirms the resurgence in buying pressure. At press time, the CMF sits at 0.06.

This indicator measures the flow of money into and out of an asset. A positive CMF value indicates that buying volume outweighs selling volume, signaling investor accumulation.

For HBAR, this trend reinforces the idea that demand for the token is strengthening despite recent price consolidation. If this continues, the token’s price could climb to $0.23.

However, HBAR’s price could break below $0.19 if selling pressure gains momentum.