- Liquidity Drives Price: HBAR’s recent movements are influenced by liquidity above and below supply zones
- Bullish or Bearish Ahead? The price could rebound from a demand zone or continue dropping after revisiting smaller supply levels
- Stay Flexible: Scenarios are possibilities, not certainties—always expect the unexpected in crypto markets
In our last analysis of HBAR, we highlighted how the price was reacting to a supply zone.
But what exactly is a supply zone? In simple terms, it’s an area where sellers dominate, often leading to price reversals or pullbacks.
However, in this case, the market presented liquidity both above and below this zone, creating an intriguing setup.
What Happened Next?
Instead of taking the higher liquidity, HBAR reacted to the supply zone and grabbed the liquidity resting below. This is a common behavior in markets—liquidity serves as a magnet for price.
Traders who waited to see if the upper liquidity would be tapped before shorting had to exercise patience as the market played out.
What Could Happen Now?
Here are two potential scenarios for HBAR:
Bullish Reaction from Demand Zone
HBAR could respond to a nearby demand zone. This may allow the price to recover some of the liquidity left behind during the drop.
A short-term bounce is possible, but traders should watch how the market structure develops.
Continued Bearish Momentum
Alternatively, HBAR may resume its downward trajectory, potentially revisiting smaller supply zones before another leg down.
Traders looking to short should monitor these areas closely.
The Importance of Flexibility in Trading
Remember, price movement is inherently unpredictable.
While these scenarios are informed by technical analysis, nothing is guaranteed. The market could surprise us and go entirely off-script.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk.
We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
