Recent price action in Hedera (HBAR) has been characterized by significant post-drawdown recovery attempts. The inability of the altcoin to gather bullish momentum despite showing signs of bounce raises concern.
The key issue is increased risk for traders who hold short positions as they face significant liquidation pressures.
HBAR traders should be careful
Recent data from the liquidation map reveals that once HBAR recovers and reaches a resistance level of $0.276, it can liquidate a short contract of about $42 million. This price range serves as an important barrier to HBAR recovery.
This level of massive shorts indicates that many traders are not optimistic about a potential recovery. If the price crosses this barrier, it can cause a throttle and benefit people in longer positions.
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The correlation between HBAR and Bitcoin has skyrocketed from 0.19 to 0.71 in just five days. This rapid increase suggests that HBAR is likely to follow the price movement of Bitcoin.
If Bitcoin successfully breaks the $115,000 resistance and holds it as support, the HBAR could continue to rise as well. This could provide the momentum needed for the HBAR to break resistance levels and recover some of the recent losses.
Hbar Price is looking for a bounce
HBAR is currently trading at $0.245, 12.6% below its next major resistance level of $0.276. Breaking this resistance is essential for HBAR to recover the 21% loss that occurred at the end of July.
If HBAR can secure a support level of $0.241, they are poised to push towards $0.276. This could open the door for further price increases, leading to the liquidation of short positions.
However, if HBAR fails to maintain support at $0.241 and market sentiment remains weak, prices could continue to move downward. A drop below $0.241 suggests a further decline, with the next support being $0.220, which disables bullish outlook and shifts focus to potential losses.
Post $42 million shorts line – can hbar pull away from the surprising squeeze? It first appeared in Beincrypto.
