Hedera’s native token, HBAR, is currently navigating a precarious technical landscape as bearish signals escalate, raising alarms about potential further declines. The altcoin has entrenched itself in a continuous downtrend, prompting worries among investors regarding imminent losses.
Traders involved with HBAR are increasingly anxious, particularly concerning the risk posed to long positions in the Futures market. If the downward trend persists, billions in bullish contracts could be at significant risk.
Recent analysis from the Liquidation Map highlights that HBAR’s price faces critical pressure at the $0.200 threshold. Should it tumble to this level, approximately $30 million worth of long positions would become susceptible to liquidation, likely triggering a wave of panic among traders who have remained hopeful despite prevailing market challenges.
This potential wave of liquidations could dampen overall market sentiment, as leveraged traders may pull back their exposure. Prolonged price hovering near this liquidation trigger zone is likely to erode bullish confidence further.
From a technical standpoint, key momentum indicators are illustrating a bearish inclination. The Relative Strength Index (RSI) has dipped below the neutral mark of 50.0, indicating that sellers are currently dominating the market. Should the RSI continue to decline, it would further underscore the growing downside momentum and suggest a higher propensity for price weakness.
The waning momentum signifies that HBAR lacks sufficient buying pressure to counteract the ongoing selling activity. Without a rapid improvement in market conditions, bearish sentiment is expected to prevail. Consequently, the altcoin could face deeper declines before any potential signs of recovery emerge.
As of the latest data, HBAR is trading at $0.212, displaying evident signs of vulnerability. The presence of a descending wedge pattern indicates that the token may soon retest the lower trend line, further endorsing the bearish outlook pervading the market. Notably, the key support level lies at $0.202; breaching this point may activate $30 million in long liquidations, further intensifying pressure on HBAR holders.
While a recovery may materialize later, the immediate forecast appears grim unless favorable conditions arise promptly. However, should HBAR manage to reclaim support levels at $0.219 or even $0.230, it could shift the narrative. This development could reignite bullish sentiment among traders and pave the way for a potential rebound.
