HBAR may retest $0.08665 as bearish sentiment dominates

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are all in the red as the cryptocurrency market continues its losing streak.

HBAR, the native coin of the Hedera ecosystem, also extended its losses and now trades below $0.10, down by nearly 4% since Monday.

Weakening on-chain and derivatives data support a bearish outlook alongside an unfavourable technical outlook.

On-chain and derivatives data support bearish bias

HBAR has lost the $0.103 support level and is now trading at $0.09313, down by nearly 4% in the last 24 hours.

The bearish performance comes amid bearish derivatives data and negative sentiment in the market.

Santiment’s Social Dominance metric for Hedera currently shows a bearish bias.

The metric measures the share of HBAR-related discussions across the cryptocurrency media. 

This index has been on a decline since the end of December, falling again in February to 0.018% on Tuesday.

The decline indicates fading market interest and weakening sentiment among HBAR investors. 

The derivatives side also shows that retail traders are extremely bearish regarding HBAR’s price action.

CoinGlass data shows that HBAR’s futures Open Interest (OI) has declined to $90.18 million on Tuesday. 

The OI has been steadily declining since early January and is now approaching the February 6 level of $88.89 million.

This drop in OI reflects declining investor participation and projects a bearish outlook.

Hedera Price Forecast: Will HBAR retest the $0.08665 support level?

Similar to the other leading cryptocurrencies, the HBAR/USD 4-hour chart is extremely bearish at the moment.

HBAR’s price was rejected around the 50-day Exponential Moving Average (EMA) at $0.103 ten days ago and has lost 10% of its value since then. 

Its 50-day EMA level roughly coincides with the upper trendline of a falling wedge pattern, making it a key resistance zone.

At press time, HBAR is trading at $0.093.

If the market correction persists, HBAR could extend the decline toward the weekly support at $0.090. 

Failure to defend this weekly support level will allow the bears to extend the losses toward the next daily support level at $0.072, which aligns with the October 10 low.

The market could encounter slight resistance at the February 6 low of $0.08665.

The Relative Strength Index (RSI) on the 4-hour chart is at 37, below the neutral level of 50 and approaching the oversold region, indicating bearish momentum gaining traction.

The Moving Average Convergence Divergence (MACD) lines are diverging, indicating bearish bias among traders.

If the MACD remains bearish, HBAR’s price could dip lower in the near term. 

On the other hand, if HBAR recovers, the coin could extend the advance toward the 50-day EMA at $0.103.

The recent swing high of $0.1079 could also serve as a target for the bulls.