Hedera’s Long/Short ratio has soared to a 30-day high, signaling a bullish shift in market sentiment.
This comes amid severe market volatility and huge long liquidations across many assets. With growing bullish sentiment, HBAR could reverse its downward trend and record gains in the near term.
HBAR Shows Bullish Signs as Long Positions Surge
Despite a broader market downturn that has weighed on altcoin prices, HBAR is bucking the trend in terms of investor positioning.
Coinglass data shows that many traders are entering long positions on the token, indicating growing confidence in a potential upside move. This is reflected by its Long/Short, which currently sits at a 30-day high of 1.06 at press time.
The long/short ratio measures the proportion of long positions (bets on price increases) to short positions (bets on price declines) in the market. A ratio below one means there are more short positions than long positions.
Conversely, as with HBAR, when an asset’s long/short ratio is above one, more traders are holding long positions than short positions, indicating a bullish market sentiment.
Further, HBAR’s open interest has climbed, supporting this bullish outlook. As of this writing, it is at $142 million, rising 3% in the past 24 hours. Notably, during this period, HBAR’s price is down 2%.
When an asset’s price falls, but open interest rises, it suggests that traders are still actively entering new positions, potentially anticipating a future price rebound despite the current decline.
A combined reading of HBAR’s long/short ratio and rising open interest amid falling prices signals that the majority of its traders have a bullish outlook. This indicates that even with price declines, HBAR traders anticipate an upward trend in the near future.
Profit-Taking Threatens HBAR’s Rally
At press time, HBAR exchanges hands at $0.15. The gradual resurgence in bullish sentiment and new demand could reverse its current downtrend and push HBAR toward $0.17.
However, if profit-taking continues and bullish pressure becomes subdued again, HBAR could contain its decline and fall to $0.11.
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