HBAR price drop of 4-month model threatens to liquidate $6 million of short positions

Note that Hedera remains under selling pressure after a sustained decline that brought HBAR back to testing a long-term technical pattern. The symbol has traded in this range for several months, limiting upward attempts.

Many indicators are now pointing to a bullish configuration, but the price action is yet to confirm the turnaround, maintaining the cautious sentiment.

HBAR has a fundamental bullish catalyst

The HBAR cash flow index is showing early signs of strength despite continued price weakness. In the two-day chart, the indicator forms a bullish divergence with the price. while HBAR recorded a lower minimum the Money Flow Index was able to maintain higher minimums, which indicate the increasing buying pressure under the surface.

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This gap indicates that the sales momentum is gradually fading. As sellers lose control, buyers begin to step in without immediately pushing up prices. These conditions are often preceded by trend reversals, especially when they are supported by pressure patterns and momentum indicators that improve over a longer period of time.

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Derivatives data highlights high risks for bearish traders. The liquidation chart shows that a break in HBAR will put significant pressure on short positions. When the price reaches $0.1013, the liquidation of short positions worth about $6.2 million can be triggered, forcing a quick closing of positions.

Depending on the style HBAR is currently trading in it A breakout can happen quickly if resistance is crossed. Forced liquidations usually accelerate price movement, reinforcing upward momentum. As a result, short traders face higher risks if HBAR breaks its current higher range.

Possibility of a breakout in the HBAR price

The HBAR price is trading near $0.0826 at the time of writing, and is holding its grip above the $0.0786 support level. This altcoin has been moving in a descending channel for almost four months. This structure reflects a prolonged consolidation as price volatility continues to decline.

A breakdown of this pattern seems to be becoming increasingly likely as the macro-scale selling pressure fades. Confirmation requires HBAR to break the upper trend line of the channel and turn $0.1042 into support. Such a move will liquidate short positions and push the price towards $0.129, the target of the 32% upside expected for the model.

However, downside risk remained if general market conditions did not improve. Missing the $0.0786 support weakens the structure of the pattern. In this scenario, HBAR decreases towards $0.0622. Any move to that level would invalidate the entire bullish thesis.