Altcoins News

Story: Hedera (HBAR) on the Edge of Breakdown as Bulls Defend Key Support Amid Market Uncertainty

By Maheen Hernandez

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Hedera's native cryptocurrency, HBAR, is facing mounting pressure after a sharp decline of nearly 20% over the past week.

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HBAR’s price has been following the broader altcoin market, which remains under pressure due to Bitcoin’s recent pullback.

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Key Support at $0.22 Holds the Spotlight

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On the daily price chart, HBAR is hovering near its 20-day exponential moving average (EMA), a commonly followed trend indicator used by traders to identify market direction.

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Technical indicators show that the 20-day EMA serves as a midpoint between short-term sentiment and trend strength.

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Traders Watching Liquidity Zone Around $0.29

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Despite the growing downside pressure, on-chain data reveals a potential bullish catalyst. Analysis from Coinglass shows a significant liquidity cluster forming around the $0.

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Liquidity heatmaps are tools used by professional traders to identify areas with high trading interest, particularly where stop-losses and liquidation orders are concentrated.

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In HBAR’s case, the presence of a liquidity pocket well above the current market price may encourage buying pressure in hopes of testing that zone.

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Positive Funding Rate Signals Lingering Bullish Sentiment

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Another important factor supporting the possibility of a recovery is the consistently positive funding rate for HBAR futures contracts.

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Funding rates represent the cost of holding positions in perpetual futures contracts and are a strong indicator of market sentiment.

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This ongoing bullish sentiment in the derivatives market could play a crucial role in supporting prices, especially if broader market conditions begin to stabilize.

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For now, HBAR’s fate largely depends on whether the $0.22 support level can hold. If it does, traders could see a short-term rebound, possibly toward $0.

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However, if the price fails to hold above this level, it may signal a loss of buyer confidence and could lead to a deeper retracement.

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