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The price of Hedera has registered a significant increase in recent sessions, pushing HBAR towards a critical resistance zone. The move temporarily raised hopes of a recovery.
However, the altcoin has once again returned to a near-barrier hurdle that it has failed to break for weeks, exposing bullish traders to risks as downward pressure mounts.
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HBAR traders are facing losses
HBAR traders showed a strong uptrend, opening long buy trades in anticipation of a breakout move. Derived data indicate that optimism remains high. However, this approach can be hasty as the technical barriers remain impenetrable.
The settlement chart data highlights a risk concentration between $0.124 and $0.122. If the price falls towards the minimum limit, about $6.23 million of long positions can be liquidated. This is likely to increase selling pressure and decrease bullish sentiment.
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Forced liquidations often accelerate declines. When you remove it, the price weakness leads to more disadvantages. This scenario leaves HBAR vulnerable if demand fails to absorb sales near current levels.
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HBAR coin is in the overbought zone
Momentum indicators reinforce caution. The Money Flow Index is moving deeper into the overbought zone after recently crossing the 80.0 threshold. This level often indicates exaggerated conditions rather than sustained strength.
The IMF combines price and volume to measure buying and selling pressure. When the reading remains high, markets often see corrections as buyers lose control. In order HBAR, indicates that Until the recent uptrend is closer to exiting rather than continuing.
Note that overbought conditions do not guarantee an immediate reversal, but increase the possibility of corrective movements, especially when they are combined with strong resistance and the presence of high leverage in long trades.
Can the price of HBAR escape its downward trend?
Hydra HBAR is trading near $0.126 at the time of writing, and is below the $0.130 resistance. The price has not yet managed to break a six-week trend line that has repeatedly held rallies, and this limit combination has continued the upside momentum.
Based on the current market sentiment and leverage situation, another rejection seems likely. Downward movement may result Push HBAR down $0.125. In this scenario, the price can fall towards the support of $0.120, which leads to the liquidation of long trades and increases the losses more quickly.
Consider that a bullish scenario is still possible if conditions change. It could lead to a strong demand in the spot market or a general improvement in the market HBAR above $0.130. The breakdown of the downtrend will open the possibility of a rise towards $0.141, eliminating negative expectations and returning hope for a recovery.
