Hedera (HBAR) has seen a 10.5% decline over the past week, with technical and derivative indicators signaling growing weakness. Futures volume has dropped below $100 million for five consecutive days, reflecting a significant reduction in speculative interest compared to March's peak of $1.3 billion.
Historically, HBAR closely tracked Bitcoin's movements, but it has underperformed during BTC's recent rally, gaining only 0.75% in the last 30 days. With EMA lines remaining bearish and price nearing critical support at $0.18, HBAR faces a pivotal moment that could determine its trajectory heading into June.
HBAR Futures Volume Decline: Implications for June
HBAR futures volume has dwindled to $96.5 million, staying below $100 million for five straight days—a stark contrast to earlier highs this year. On March 1, futures volume peaked at $1.3 billion, but since then, both volume and open interest have steadily declined.
👉 Discover how futures trading impacts HBAR's market dynamics
Futures trading allows speculation on HBAR's future price, and its activity often mirrors broader market sentiment. The recent drop suggests waning speculative interest, potentially indicating caution among traders. With the 7-day EMA of futures volume at a three-month low, price action may now rely more on spot demand than leveraged positions.
Key Takeaways:
- Declining futures volume signals reduced speculative activity.
- Spot demand may drive HBAR's price more than derivatives.
- A rebound in derivatives could restore upward momentum.
Hedera's Underperformance: Can It Rebound in June?
HBAR has historically shown a strong correlation with Bitcoin, often amplifying broader market trends. However, in the last 30 days, BTC surged 14.3%, while HBAR gained just 0.75%. This divergence suggests HBAR has yet to respond to the broader bullish momentum.
👉 Explore HBAR's historical performance trends
In past cycles, HBAR outperformed BTC during rallies but also faced steeper declines in corrections. If Bitcoin reaches new highs in June, HBAR could experience a sharper upward move, capitalizing on its high-beta nature.
Technical Analysis: HBAR Nears Critical Support
HBAR's EMA structure remains bearish, with short-term averages below long-term ones—indicating ongoing downward pressure. The token has traded below $0.20 for six days, reflecting sustained selling pressure.
Key Levels to Watch:
- Support: $0.18 (a break below could signal further downside).
- Resistance: $0.20 (a breakout could target $0.25, last seen in early March).
FAQ
1. Why has HBAR underperformed Bitcoin recently?
HBAR's weaker correlation with BTC in recent weeks suggests subdued speculative interest and a lack of leveraged inflows.
2. What does falling futures volume mean for HBAR?
Lower futures volume indicates reduced speculative activity, potentially leading to less volatility and more organic price trends.
3. Can HBAR rebound in June?
If Bitcoin rallies further, HBAR could see a sharper upward move, given its historical high-beta behavior.
4. What are HBAR's key support and resistance levels?
Critical support sits at $0.18, while a break above $0.20 could target $0.25.
5. How does HBAR's EMA setup influence its price?
The bearish EMA structure suggests ongoing downward momentum unless a strong reversal occurs.
Conclusion
HBAR faces a critical juncture as it approaches key support levels amid declining futures volume and bearish technical indicators. June’s market conditions—particularly Bitcoin’s performance—will play a decisive role in determining whether HBAR can regain momentum or face further downside. Traders should monitor derivatives activity, spot demand, and broader market trends for clues on HBAR’s next move.