Hedera price has surged in recent sessions, pushing HBAR ($0.12) towards a critical resistance zone. The move briefly raised hopes of recovery.
However, the altcoin once again got stuck near a barrier that it was unable to overcome for weeks, leaving bullish traders at risk as downside pressure builds.
HBAR traders face losses
HBAR traders have turned heavily bullish and opened long positions in anticipation of a breakout. Derivatives data shows optimism remains high. However, this positioning may be premature as the technical barriers are still intact.
Liquidation heat map data indicates a risk concentration between $0.124 and $0.122. If the price falls towards the lower bound, approximately $6.23 million worth of long positions could be liquidated. Such an event would likely increase selling pressure and erode bullish conviction.
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Forced liquidations often accelerate the decline. As debt burden decreases, price weakness drives further downward moves. This setup leaves HBAR vulnerable if demand fails to absorb sales at current levels.
HBAR has been acquired
Momentum indicators reinforce caution. The Money Flow Index is moving deeper into overbought territory, recently crossing the 80.0 threshold. This level often indicates tense conditions rather than lasting strength.
MFI combines price and volume to measure buying and selling pressure. When the numbers remain high, markets often experience a pullback as buyers lose control. For HBAR, this indicates that the recent rally appears to be an exhaustion rather than a continuation.
HBAR MFI. Source: TradingViewOverbought conditions do not guarantee immediate chargebacks. However, they increase the likelihood of corrective moves, especially if they are accompanied by strong resistance and heavy leverage on the long side.
Can HBAR Price Escape Its Downtrend?
HBAR is trading near USD 0.126 at the time of writing, which is below the USD 0.130 resistance. Price has also failed to break the six-week downtrend line, which has repeatedly capped rallies. This combination limits bullish follow-through.
Given current sentiment and leverage, another rejection seems likely. A downward move could push the HBAR below $0.125. In this scenario, the price could fall towards the USD 0.120 support, leading to prolonged liquidations and increasing losses.
HBAR Price Analysis. Source: TradingViewA bullish alternative remains possible if conditions change. Strong spot demand or a broader market improvement could lift the HBAR above $0.130. Escaping the downtrend would allow a move towards $0.141, negating the bearish outlook and restoring recovery hopes.
The post HBAR Traders at Risk of $6M Liquidations Due to Overbought Conditions appeared first on BeInCrypto.
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