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Hedera’s native token, HBAR, is showing strong signs of upward momentum, prompting both excitement and caution across the cryptocurrency market. With the asset nearing a critical resistance level, short traders may soon face up to $70 million in liquidations—potentially adding fuel to the ongoing rally.
Recent market activity indicates that HBAR is gaining strength amid growing investor interest and favorable technical indicators. While bulls are gaining the upper hand, the outcome hinges on whether HBAR can break past key price levels in the coming days.
Investor Sentiment Turns Bullish
One of the primary indicators pointing to positive sentiment is the Chaikin Money Flow (CMF), which has turned decisively bullish. For the first time since December 2024, the CMF has moved above the zero line. This upward shift signals that more capital is flowing into HBAR than out, highlighting strong demand from investors.
The renewed inflow reflects a growing belief among market participants that HBAR’s recent rally could be sustainable. As the broader crypto market also trends upward, HBAR appears to be riding that wave, drawing in both retail and institutional interest.
Short Traders Under Pressure
At the same time, traders betting against HBAR could be in for trouble. The latest liquidation data reveals that if the token breaks through the $0.22 resistance level, approximately $70 million in short positions could be wiped out. This would not only trigger losses for bearish traders but also potentially send the price higher in a cascading effect.
Currently trading around $0.194, HBAR is approaching a pivotal level near $0.200. A breakout above this mark could reinforce bullish momentum and make a run toward $0.22 more likely. The pressure on short sellers would mount as the token rises, forcing them to close positions and creating additional buying pressure in the process.
These dynamics create a classic short squeeze scenario, where rapid upward price movement forces bears to buy back the asset to limit their losses—further accelerating the rally.
The $0.200 Threshold Is Key
HBAR’s recent price action places it just beneath the important psychological and technical resistance at $0.200. This level has acted as a ceiling for the token, and flipping it into support would be a strong confirmation of sustained bullish control.
If HBAR can establish support above this level, the pathway to $0.220 becomes much clearer. That move could be the final trigger for the $70 million liquidation event, setting off another leg of upward movement.
This scenario paints a bullish picture in the short term, but traders are advised to remain cautious. While technicals support the upward move, price volatility in the crypto space remains high, and any shift in sentiment or macroeconomic factors could quickly alter the trajectory.
What If HBAR Fails to Hold?
Despite the optimistic outlook, there’s still room for caution. If HBAR fails to maintain its upward trajectory, it could slip below $0.182—a key support level along its ascending trendline. A breakdown below this point could invalidate the current bullish setup and trigger a retreat to the $0.167 zone.
Such a pullback would likely weaken investor confidence and delay any potential move toward higher resistance levels. For short traders, this would offer a temporary reprieve. But for bullish investors, it would mean reevaluating entry points and reassessing overall market sentiment.
Outlook for Traders and Investors
The HBAR price movement in the days ahead will largely be dictated by its performance around the $0.200 resistance. Traders should watch closely for either a confirmed breakout or a breakdown below key support, as these signals will define the next major market move.
With millions of dollars in short interest on the line, HBAR’s price behavior could have outsized effects in the short term, both for individual traders and the market at large. Should the bulls succeed, it could be a defining moment for Hedera’s token—and a warning to those betting against it.
