Investors Withdrew $17 Million From Hedera: How Will This Affect the HBAR Rate?
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This week, market players have been actively withdrawing funds from the Hedera token ( #HBARUSD ) — outflows in seven days have reached $17 million. Against this backdrop, the asset price is likely to continue to fall
Let's figure out what's happening on the Hedera market and what to expect from the cryptocurrency price.
Hedera Outflows Point to Weak Demand
The HBAR spot market saw significant outflows last week, with investors withdrawing more than $17 million in seven days. There was only one inflow during that period, of $1.78 million on January 19, according to Coinglass.
This happens when investors actively withdraw funds from the cryptocurrency and sell it off. This indicates a decrease in demand and an increase in selling pressure, which can lead to a drop in the price of the asset.
Additionally, the HBAR weighted sentiment is in the negative zone at -0.61 at the time of publication. This has been the case throughout the week, confirming the bearish sentiment. This means that most cryptocurrency investors do not believe in its future prospects.
Under such conditions, the price of the Hedera token is likely to continue to decline as traders show no interest in opening new trades.
HBAR Forecast: Will the Token Be Able to Hold Above $0.20
At the time of writing this analysis, HBAR is trading at $0.225. The gain in the last 24 hours is 2.6%
.Since hitting a four-year high of $0.40 on January 17, the token has been moving below a descending trendline. Despite the latest price rally, the cryptocurrency is still moving in a steady downtrend, with selling pressure outpacing buying activity.
If the market situation does not improve, the price of the Hedera token may fall below $0.20 and reach $0.17.
However, if demand recovers, the bearish scenario will be cancelled. Then the rate will have a chance to break through the downward trend line and reach $0.26.
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