Hedera’s native cryptocurrency, HBAR, has recently experienced a notable price surge, setting the stage for a potential breakout from a bullish chart pattern. This uptick in value reflects an overall improving sentiment within specific altcoin markets, although successful breakouts are contingent on sustained follow-through buying from investors.
The Money Flow Index (MFI) has been a key indicator in this context, showing a rising trend that signals increasing buying pressure. This upward trajectory suggests that capital is returning to HBAR, with strengthening MFI readings typically indicating heightened demand during early recovery phases. Investors appear to be accumulating HBAR as its price begins to rise, which not only provides liquidity support but also reinforces the overall bullish structure of the market. Should this buying pressure continue to grow, HBAR may maintain its upward momentum, helping it to surpass near-term resistance levels.
A critical factor to watch is the liquidation heatmap, which reveals that approximately $1 million worth of short positions could face forced liquidation around the $0.1084 mark. A move through this price range is anticipated to significantly enhance upside volatility. When bearish traders are compelled to cover their positions in a short squeeze, it often leads to rapid price increases. Therefore, if HBAR can clear the $0.1084 threshold, it may act as a catalyst for further price gains.
However, for such a movement to occur, investors must maintain bullish momentum leading up to this critical level. Without consistent accumulation, the market might lack the necessary pressure to propel HBAR forward. The durability of any breakout is largely dependent on sustained inflows and a reduction in profit-taking activities by traders.
Currently, HBAR is trading at around $0.1025, inching closer to the $0.1030 resistance level. Establishing this point as a support would solidify a breakout confirmation; a decisive close above this resistance could signal a shift in sentiment towards sustained recovery for the token. The price action reveals that HBAR has been moving within a descending broadening wedge pattern, which could project an impressive 57% rally upon confirmation. Nevertheless, a more pragmatic target could be around $0.1234, a level that reflects recent losses.
Conversely, if investors begin to secure profits too early, the risk of a price pullback increases. A decline towards the $0.0901 support level would jeopardize the bullish outlook. Thus, maintaining adequate buying pressure is vital for Hedera to extend its gains and sustain the momentum of any potential breakout in the coming sessions.
