Following a significant increase, the Hedera (HBAR) price is currently experiencing strong upward pressure. Despite the efforts of the bulls to reignite the rally, the bears are putting up a tough fight. The HBAR price has retraced a large portion of its recent gains and is struggling to break above the $0.09 resistance level. Additionally, the rising open interest and the potential for short liquidations are expected to increase volatility. The crucial question now is whether HBAR can overcome the selling pressure and surpass the $0.10 mark, as bears are ready to push the rally lower.
Is HBAR Heading for a Short Squeeze?
The liquidation map for Hedera indicates that bears could face pressure if the recovery continues. With the current price hovering around $0.0861, there is a concentration of potential short liquidations above this level. The cumulative short-liquidation curve shows a significant increase above $0.09, suggesting a large number of potential liquidations at higher prices. If buyers manage to push the price above this range, bearish traders may be forced to close their positions, leading to more buying pressure and potentially triggering a short squeeze.
The price range of $0.095 to $0.10 also presents a significant area to monitor, with a substantial potential for liquidations. A breakout above $0.09 could bring this zone into focus and increase the likelihood of surpassing $0.10. The liquidation data currently serves as a potential bullish catalyst rather than a confirmation of a trend reversal.
Hedera Bears Challenge the Recovery Rally at $0.09
The HBAR price is struggling to regain its bullish momentum after a sharp rally towards $0.13, facing resistance from sellers. With the latest candle closing at $0.085, both price action and derivatives data suggest that the next move will be critical for the recovery. The open interest has risen to nearly $389.72 million, approaching the levels seen during the late-September rally.
If the price breaks above resistance while open interest continues to climb, it could indicate that new positions are supporting the upward movement.
Furthermore, the funding rate stands at 0.0059%, indicating a slight tilt towards long positioning in perpetual futures. From a technical standpoint, $0.08917 poses the first major hurdle for buyers, with a daily close above this level potentially paving the way towards $0.097 and the psychological $0.10 mark. On the downside, maintaining the rising trendline near $0.085 is crucial for HBAR, as a breach could expose support at $0.07938.
Can Hedera (HBAR) Price Return to $0.1?
Hedera’s recovery is currently at a crucial juncture, with the next move dependent on the ability of buyers to overcome selling pressure and restore bullish momentum. The rising open interest indicates that traders are positioning for a significant move, while the liquidation map suggests the potential for a short squeeze if the HBAR price continues to rise.
While a return to $0.10 remains a possibility, bulls must sustain the current rebound as a prolonged rally rather than a temporary bounce. Strengthening buying momentum could propel HBAR towards this psychological milestone once again. However, persistent selling pressure could delay the recovery and expose the market to further downside risks.
