600% Hike Pushes Hedera (HBAR) Open Interest to All-Time High, Traders Expect More

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As a seasoned researcher with over a decade of experience in the dynamic world of finance and cryptocurrencies, I must admit that the recent surge in HBAR‘s open interest has caught my attention like a beacon in the night sky. The 600% price increase in just 30 days is a testament to the token’s growing popularity and trader interest.

Hedera’s open interest has reached an unprecedented peak, soaring to a new record high, after experiencing a staggering 600% surge in value over the past month. This impressive rise indicates the most significant level of trader engagement with the token since it was first introduced.

Peering into the future, a number of important signs point towards HBAR’s price surge and positive trend continuing. According to this analysis of blockchain data, here’s what we might anticipate for this digital currency next.

Hedera Has Traders’ Attention on Lock

Recently, BeInCrypto announced that HBAR’s open interest had increased to $220 million. However, at this moment, Glassnode shows that figure has climbed even higher to $417.98 million. Open Interest, often referred to as OI, signifies the total quantity of open positions in a contract, with each position containing both a buyer and a seller.

A rise in Open Interest (OI) implies that traders are actively expanding their market holdings, with buyers showing more assertiveness than sellers, which elevates the total net positioning. On the flip side, a drop in OI suggests that market players are scaling back their positions, indicating less market activity overall.

Additionally, it appears that the escalating prices in tandem with the expanding Open Interest could imply that there are more individuals buying (longs) than selling (shorts). However, a more accurate interpretation is that market participants are either increasing or closing their positions, and an increase in Open Interest often signals a stronger directional trend.

Consequently, the rise in the options instrument (OI) for this altcoin during the recent surge indicates a potential increase in HBAR’s trading price in the near future. Simultaneously, it’s worth noting that the token’s funding rate continues to stay within the profitable zone.

In simpler terms, if a funding rate is positive, it means that the contract cost is higher than the index price, and those holding long positions are paying a fee (or “funding”) to those with short positions. On the other hand, when the funding rate is negative, the contract cost is lower than the index price, so short position holders pay the fee (“funding”) to long position holders.

Given the present market situation, shorts are receiving payment from longs, indicating that traders are predicting a potential price rise in the future.

HBAR Price Prediction: Rally to Accelerate

On the 4-hour chart, HBAR’s price has burst through a downward-sloping triangle it formed from December 3 to 6. This triangle shape often indicates a possible decline in the market.

The graph displays an upward-sloping line that gradually descends, signifying decreasing highs, and a horizontal line at a lower point serving as reinforcement. When the price gets close to the top of this triangle shape, breaking through the support level below typically indicates a resumption of the downward trend.

Contrary to expectations, HBAR didn’t drop below its support line. Instead, it soared beyond the bottom edge of the descending pattern. Given this trajectory, it’s plausible that the token’s worth could climb up to $0.42 in the near future.

Looking ahead, it’s possible that the value of HBAR may increase in the future. But if the price falls below the support level at $0.28, this could lead to a further drop in its value. If the open interest for HBAR also decreases during this time, the price might slide down to around $0.22.

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2024-12-07 18:55