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Hedera has recorded a limited recovery in recent sessions. The HBAR price remains restricted due to the prevailing caution in the cryptocurrency market in general. Bitcoin’s uncertainty and macroeconomic conditions continue to prevent bullish attempts.
Watch for changing signals from bearish traders. Derivatives positioning indicators and capital flows indicate that the current balance may change.
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Hedera traders may be in trouble
HBAR is currently a witness A strong bearish position in the futures market. Traders opened a notable number of short contracts, reflecting expectations of further decline. The liquidation map shows that positions are biased towards sellers at current levels.
The data indicates that HBAR sellers could face liquidations worth about $4.9 million if the price crosses the $0.1143 level. Such forced liquidations can lead to rapid upward swings. When short positions are closed, buying pressure increases as traders close out their contracts.
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The Chaiken Money Flow Index provides additional insight into capital movements. The CMF measures inflows and outflows to assess the control of buyers or sellers. The index is currently rising, although it is still at the zero line.
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An upward slope to zero indicates that outflows are equal to inflows. However, the spread is likely to be restricted as inflows increase. Reduced flows often precede a shift toward net flows. If this happens again, HBAR could get the momentum needed for a short-term recovery.
Bitcoin is worthless
Correlation trends also support the possibility of a change. The correlation of HBAR with Bitcoin has decreased in recent weeks. The current coefficient has decreased to 0.09, which indicates a weak alignment with the leader of the digital currency market, and its proximity to a complete discovery by Bitcoin.
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The low correlation encouraged altcoins during periods of uncertainty in Bitcoin. If Hedera HBAR breaks further, the price action may reflect specific investor demand rather than general market weakness. This flexibility gives Hedera HBAR the potential to follow an independent recovery path.
The HBAR price has some hurdles to overcome
HBAR is currently trading at $0.1019 at the time of writing. The altcoin remains above the major support level at $0.0961 on the 38.2% Fibonacci line. However, it faces resistance at $0.1035, which is in line with the 50% Fibonacci retracement. This level is currently limiting the upward momentum.
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Flipping $0.1035 to support would have represented a short-term breakout. When combined with a drop in flows, this change could lead to a rebound in prices. Hedera HBAR would then target $0.1109 at the 61.8% Fibonacci level.
This level is considered a crucial support for the asset, and the breakdown would probably have triggered a stronger purchase among investors, pushing the HBAR price higher.
This will allow Hedera HBAR to exceed $0.1143, a level that threatens to liquidate short positions worth $4.9 million. Continued strength could extend gains towards $0.1215 and eventually $0.1349, helping to recover losses from the beginning of the year.
Consolidation may continue if bullish signals fail. Continuous flows limit shedding attempts. A drop below the $0.0961 support could expose HBAR to further declines near $0.0870. This move would have negated the short-term bullish outlook and strengthened bearish control.
