Hedera (HBAR) recently encountered a significant hurdle as it faced price rejection at a crucial weekly bearish order block. Currently hovering at the $0.0500 level, this juncture has emerged as a formidable obstacle for sellers looking to capitalize on the prevailing bearish sentiment.
In a price report, it was revealed that HBAR's funding rates have consistently remained in negative territory for the past few days. This bearish skew in the futures market further underscores the challenges HBAR faces in its price recovery.
The current HBAR price, as reported by CoinGecko, stands at $0.050716, with a 5.0% decline over the last 24 hours and nearly 13% drop over the past seven days.
Declining Open Interest Reflects Reduced Hedera Demand
Adding to the bearish narrative, open interest rates for HBAR have plummeted from $27 million to $21 million within the last five days (from August 24th to August 31st). This substantial drop indicates a waning demand for HBAR within the futures market, potentially emboldening sellers to seek further gains.
The fate of HBAR remains closely intertwined with Bitcoin's performance. As Bitcoin drops below the key $26,000 level, it has retraced a significant portion of its loss courtesy of a favorable US court ruling in Grayscale Investments' Bitcoin ETF case against the Securities and Exchange Commission.
HBAR market cap currently at $1.6 billion. Chart: TradingView.com
SEC's ETF Delay Casts a Shadow on the Crypto Market
Bitcoin's value, along with that of other cryptocurrencies, took a hit following the SEC's announcement of a delay in reviewing seven spot Bitcoin exchange-traded fund (ETF) applications until October. This delay has cast a shadow of uncertainty over the cryptocurrency market, impacting investor sentiment.
CoinShares, in its latest Digital Asset Fund Flows Weekly Report, revealed that digital assets collectively experienced outflows of $168 million over the past week, marking a two-week streak of declining investments. This negative sentiment can be attributed to the growing belief that the approval of a spot Bitcoin ETF will take longer than initially anticipated.
HBAR seven-day price movement. Source: Coingecko.
However, amidst this turbulent market atmosphere, there is a glimmer of hope, especially after Grayscale's win in its lawsuit against the SEC.
The court acknowledged the SEC's error in rejecting Grayscale's bitcoin ETF application. This legal triumph could potentially inject some optimism back into the crypto market in the coming days.
The fate of HBAR remains closely linked to Bitcoin's performance, and uncertainties stemming from the SEC's ETF delay continue to weigh on the broader cryptocurrency market.
Grayscale's legal victory, however, offers a ray of hope amidst the prevailing bearish sentiment. Meanwhile, traders and investors are advised to tread cautiously and monitor market developments closely.
(This site's content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from IntelligentHQ
Source: NewsBTC.com
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