HBAR Price Breakdown Was Expected — The Bear Trap Risk Was Not
Despite HBAR breaking down from a head and shoulders pattern, on-chain data and RSI divergence suggest a potential bear trap is forming.Summary
HBAR recently broke below the neckline of a projected head and shoulders pattern, leading to an expected price drop. However, the subsequent price action has been surprisingly flat, and early indicators suggest a bear trap risk for those betting on further downside.
On-chain flows show a significant shift; after a negative net outflow on November 14, flows flipped positive post-breakdown, indicating sellers stepped in aggressively. Furthermore, the derivatives market shows extreme short positioning (73% of leveraged positions), which often sets the stage for a bear trap where a brief upward reversal forces shorts to liquidate.
The technical chart supports this possibility: HBAR made a lower low between October 17 and November 14, while the Relative Strength Index (RSI) formed a higher low, signaling a bullish divergence often preceding a reversal. If HBAR reclaims the neckline at $0.160, it could trigger short liquidations, potentially leading to a rebound toward $0.180. Conversely, if HBAR falls below the key support at $0.155, the bearish trend would likely resume, targeting $0.113.
(Source：BeInCrypto)