Hedera’s price drop appears to have reached a saturation point, with Altcoin showing signs of a potential recovery.
At $0.216, HBAR is trying to stabilize after a recent drawdown. This recovery could lead to key market liquidation and create both opportunities and risk for traders.
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Hedera traders need to worry
The liquidation map shows that if HBAR rises to $0.230, it will be able to liquidate short positions of over $35 million. Such developments could create large short apertures and drive even more bullish momentum across the market. This provides the HBAR with an opportunity to extend the rebound.
For traders, this means that moves above $0.230 can increase volatility. Liquidation adds fuel to upward momentum, but they are also important price ranges.
A successful push through this level could increase capital inflows as bullish investors try to gain benefits.
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On a wider scale, Hedera’s trajectory is closely linked to Bitcoin. Altcoin shares a 0.80 correlation with BTC, indicating a strong price relationship.
As long as Bitcoin maintains support of over $110,000, HBAR prices could benefit from a positive ripple effect.
This correlation gives HBAR a cushion against the negative side risk. With Bitcoin stabilising in the six-digit range, Hedera was able to take advantage of this momentum to test higher resistance zones. BTC trends play an important role in determining whether HBAR will maintain recovery or remain within range.
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HBAR prices face resistance
The HBAR trades at $0.216 and sits just below the $0.218 resistance level. This barrier has proven difficult to breach these days, but breakouts allow HBARs to build momentum towards higher targets.
The next important resistance is $0.230. Once the HBAR reaches this level, it could result in a short position liquidation of over $35 million. This short squeeze scenario could drive AltCoin higher, pushing it to $0.244.
However, if bullish momentum stalls, HBAR may consolidate within the $0.218-$0.205 range. This lateral movement negates the immediate bullish outlook, delays potential breakouts, and makes HBAR vulnerable to further stagnation.
