HBAR fell 83% from its local peak, now trades at $0.07359 amid weak derivatives activity

HBAR continued its downward trajectory on Tuesday, signaling the cryptocurrency has reached a critical juncture according to several technical indicators. Over the last 24 hours, HBAR lost approximately 2% and was trading at $0.07359 based on CoinMarketCap data. The token’s daily trading volume stood at $81.46 million, while its market capitalization was estimated at about $3.21 billion.

Historic support region back in focus

Crypto analyst Crypto Patel pointed out that HBAR has declined by roughly 83% from its most recent local peak. This correction has brought the price range down to between $0.058 and $0.042 on the weekly chart—a zone Patel identifies as a long-term buying opportunity. According to the analyst, this region has previously acted as a strong support level, attracting robust buying interest in the past.

Patel also noted that HBAR has now entered an order block on the weekly timeframe. In technical analysis, such areas are viewed as zones where sustained corrections might end and renewed buying demand can emerge.

Glossary: An order block is a technical analysis concept describing price regions that have previously sparked significant buying or selling reactions. Investors track these areas as potential supply or demand zones where new trading momentum could develop.

Key levels to watch for a trend reversal

The analyst highlighted that HBAR needs to climb above the descending trendline, which has capped the price for weeks, to reinforce any bullish outlook. Until a decisive breakout occurs, the current pattern remains only a potential breakout attempt, not a confirmed reversal.

If a breakout does materialize, Patel identified technical targets at $0.16, $0.35, and, over the longer term, $1.00. This scenario suggests a possible gain of about 1,600% from current levels. However, these projections are grounded in technical inferences drawn from previous price cycles.

Tracking historical cycles and derivatives data

In 2020, HBAR established a base around a critical support area for months, then surged roughly 1,800% in 2021. The subsequent bear market from 2022 to 2023 saw HBAR lose about 94% of its value, before rebounding by close to 800% during the 2024 rally. With the recent correction, HBAR now hovers near this long-term support range once again.

Meanwhile, derivatives market data suggests a waning of investor interest in the short term. Open interest shrank by 5.21% to $90.60 million. Trading volume also fell by 28.79% to $90.07 million, reflecting a reduction in leveraged positions across the board.

Weighted funding rates for open positions remained negative at -0.0018. This indicates that demand for short positions is marginally higher than for longs. Moving forward, the market will be closely watching to see whether HBAR can hold its weekly demand zone and break out of the downward trendline.

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