HBAR Price at Risk as Whales Diverge from Market Sentiment

HBAR Shows Mixed Performance Amid Whale Activity

Hedera (HBAR) has experienced a 14% increase this week, rebounding from recent declines. However, its monthly performance remains negative, showing a 9% drop. This raises the question: Are whales indicating a potential downturn that traders are overlooking?

Trader Optimism Persists Despite Warning Signals

The Smart Money Index (SMI), tracking seasoned HBAR traders, has been climbing since October 26. It signals a cautiously optimistic outlook, staying near 1.08. If it falls below this level, sentiment could quickly change.

Retail traders also show optimism, as the Money Flow Index (MFI) surged from 35 to 69.4, indicating increased buying interest. However, the confidence might be misplaced as whales are reducing their holdings.

Whale Movements Indicate Potential Downturn

While smaller traders remain bullish, whales are exiting. Data reveals that HBAR accounts holding over 100 million have decreased from 41.75% to 40.65% of total supply since October 21. This suggests over 110 million HBAR has left whale wallets, equating to around $20.9 million at current prices.

Chart Analysis Points to Bearish Divergence

HBAR's daily chart shows it has been in a range between $0.219 and $0.154 since October 11, reflecting market indecision. A hidden bearish divergence is evident as the price forms a lower high, while the Relative Strength Index (RSI) indicates a higher high. This pattern could foresee a continuation of the downtrend.

Currently, HBAR holds above $0.189, but losing this support may trigger a decline to $0.168, and potentially $0.154 or $0.119 if selling pressure continues. Sustained buying would be needed to counteract whale exits and stabilize the price.