HBAR surged 15%, but the selling pressure could hinder its breakout.

Hedera ( HBAR ) has surged nearly 15% in the past week, marking one of the strongest performances since July.

However, on-chain signals reveal that this excitement is hard to sustain for long. Market sentiment is gradually leaning towards pessimism, putting significant pressure on HBAR's upward momentum and increasing the risk of entering a short-term correction soon.

HBAR sentiment falls into bearish territory

According to data from Coinglass, the long/short ratio of HBAR has fallen to its lowest level in 30 days, clearly reflecting the prevailing pessimistic sentiment in the market. As of now, this figure stands at only 0.76 – a sign that most traders believe HBAR is unlikely to maintain its upward momentum.

Long/short ratio of HBAR | Source: CoinglassThe long/short ratio is considered a "balance measure" between the number of Long and Short positions. When the index exceeds 1, the market leans towards a Long trend, meaning that most investors have confidence in a price increase. Conversely, a ratio below 1 – as in the case of HBAR – indicates that confidence in a price decrease scenario is prevailing, suggesting that correction pressure may continue in the short term.

The weighted sentiment index of HBAR | Source: SantimentNot only that, the weighted sentiment index of HBAR has also returned to the negative zone, currently standing at -0.62, further reinforcing the growing sell-off signal. This is an indicator that measures the balance between positive and negative comments on social media, taking into account the level of discussion.

When the Weighted sentiment turns negative, it means that the flow of discussion on social media platforms is leaning towards pessimism. In other words, the cautious and reserved mentality of both investors and traders may continue to exert pressure, making the price volatility of HBAR more risky in the coming week.

The Hedera bulls are trying to hold the $0.2123 level while the bears are increasing pressure.

The weakening demand could cause HBAR to slide back to the support area of $0.2123. If the bulls fail to defend this key level, selling pressure may push the price down further to $0.1702.

Daily HBAR/USDT chart | Source: TradingViewConversely, once demand returns, HBAR has a full opportunity to regain upward momentum, with the next target towards $0.2762.

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