HBAR Traders Face a Risk of $6 Million Liquidations Due to Overbought Conditions

Hedera worth has surged in current periods, lifting HBAR towards a vital resistance zone. The transfer briefly raised hopes of restoration. 

However, the altcoin as soon as once more stalled close to a barrier it has failed to overcome for weeks, placing bullish merchants in danger as draw back stress builds.

HBAR Traders Face Losses

HBAR traders have leaned closely bullish, opening lengthy positions in anticipation of a breakout. Derivatives information present optimism stays high. However, this positioning could also be untimely given the technical obstacles nonetheless intact.

Liquidation heatmap information highlights a focus of danger between $0.124 and $0.122. If worth slides towards the decrease sure, roughly $6.23 million in lengthy positions might be liquidated. Such an occasion would possible intensify promoting stress and erode bullish conviction.

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Forced liquidations typically speed up declines. As leverage unwinds, worth weak point feeds into additional draw back strikes. This setup leaves HBAR weak if demand fails to take in promoting close to present ranges.

HBAR Is Overbought

Momentum indicators reinforce warning. The Money Flow Index is transferring deeper into overbought territory, lately crossing above the 80.0 threshold. This degree typically indicators stretched situations relatively than sustainable power.

MFI combines worth and quantity to gauge shopping for and promoting stress. When readings stay elevated, markets steadily expertise pullbacks as consumers lose management. For HBAR, this suggests the current rally could also be nearing exhaustion relatively than continuation.

Overbought situations don’t assure instant reversals. However, they improve the chance of corrective strikes, particularly when paired with robust resistance and heavy leverage on the lengthy aspect.

Can HBAR Price Escape Its Downtrend?

HBAR trades close to $0.126 on the time of writing, sitting beneath the $0.130 resistance. Price has additionally failed to break the six-week downtrend line that has repeatedly capped rallies. This mixture limits bullish follow-through.

Given present sentiment and leverage positioning, one other rejection seems possible. A draw back transfer may push HBAR below $0.125. Under this situation, the value might fall towards the $0.120 assist, triggering lengthy liquidations and accelerating losses.

A bullish different stays doable if situations shift. Strong spot demand or broader market enchancment could lift HBAR above $0.130. Escaping the downtrend would enable a transfer towards $0.141, invalidating the bearish outlook and restoring restoration hopes.

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