Hedera’s price decline seems to have reached a crucial juncture, as the altcoin displays early indications of a potential recovery. Currently trading at $0.216, HBAR is attempting to stabilize following recent drawdowns. This rebound, however, carries a dual-edged sword for traders, presenting both opportunity and risk.
Data from liquidation maps reveals that over $35 million in short positions may be liquidated should HBAR climb to $0.230. Such a movement could trigger a large-scale short squeeze, possibly driving bullish momentum across the broader market. This scenario could provide HBAR with a stronger foundation to extend its recovery.
For traders, the prospect of HBAR surpassing $0.230 suggests a period of heightened volatility. While the liquidation of short positions could add to upward momentum, this price level also acts as a pivotal barrier. A successful breach could usher in significant capital inflows, as bullish investors seek to capitalize on potential gains.
On a macro scale, Hedera’s performance is closely linked to Bitcoin. The altcoin showcases a 0.80 correlation with BTC, signifying a robust interconnectedness in price movements. As long as Bitcoin maintains support above $110,000, HBAR is likely poised to benefit from positive spillover effects.
This correlation offers HBAR a degree of protection against downside risks. Should Bitcoin sustain its stability in the six-figure range, Hedera might be able to leverage this momentum to confront higher resistance zones. The trajectory of BTC will play a crucial role in determining whether HBAR can maintain its recovery or remain entrenched in a range-bound trading pattern.
Currently, HBAR faces resistance just beneath the $0.218 mark, a barrier that has proven challenging to breach in recent days. A successful breakout could enable HBAR to gain momentum towards higher targets, with the next significant resistance set at $0.230. If attained, this level could trigger the aforementioned liquidation of short positions, pushing the altcoin further towards $0.244.
Conversely, if bullish momentum falters, HBAR might become stuck within the $0.218 to $0.205 range. This stagnation would undermine the immediate bullish outlook and hinder the potential breakout, leaving HBAR susceptible to further delays in its recovery efforts. As traders navigate this volatile landscape, keeping an eye on both HBAR’s resistance levels and its correlation with Bitcoin will be essential in forming an informed outlook.
