Hedera is still under pressure after a prolonged decline, causing HBAR to be in a downward trend for a month. The price receives little demand, resulting in weak recovery attempts.
A breakout from this structure requires more support from investors, but that remains limited for now. Due to this lack of conviction, derivatives traders are taking a cautious position.
HBAR traders are at risk
The position of futures shows a clear bearish picture. The liquidation heatmap indicates that short positions are at greater risk than long positions at key price levels. This skewed distribution shows that traders expect HBAR to remain under pressure before a possible recovery occurs.
Nevertheless, this situation could lead to a possible squeeze. If HBAR breaks out of the downward trend and rises towards the resistance of $0.1035, nearly $5 million in short positions could be liquidated. This could force bears to close their short positions, creating sudden buying pressure and changing the short-term sentiment.
Want to receive more insights like this about tokens? Sign up for the daily crypto newsletter from editor-in-chief Harsh Notariya here.
On-chain momentum signals present a mixed picture. The Chaikin Money Flow showed a bullish divergence earlier this week compared to the lower lows of the price. While the price continued to decline, the CMF increased, suggesting that selling pressure did not intensify but actually decreased.
Despite this divergence, confirmation is still lacking. The CMF has not yet risen above the zero line, which would indicate stronger inflows than outflows. Capital is still flowing out of HBAR, but at a slower pace. Until this movement is complete, the bullish signal remains uncertain for now.
HBAR is trading around $0.0903 at the time of writing. The price action at this level gives investors little confidence. Due to weak participation, capital inflows remain limited, causing futures traders to remain bearish and not close their positions quickly.
The near future depends on whether HBAR can break out of the downward trend. Continuous consolidation above the $0.0901 support could reduce the immediate downward risk. If inflows improve and the price remains stable, HBAR could rise towards the resistance of $0.1030. Reaching that level could pressure short positions and possibly lead to liquidations.
The risk of a decline remains significant if the situation worsens. A drop below the support of $0.0901 exposes HBAR to further losses. In that case, the price could drop towards $0.0830. If the weakness persists, it could even fall to $0.0751, completely negating the bullish expectation and continuing the downward trend.