HBAR $5 million short positions are at risk: here’s how

After the continued decline, Hedera has been under pressure. Prices have struggled to attract meaningful interest, and attempts at a recovery have been muted.

Exiting this structure will require stronger investor support, which is limited for the time being. This lack of conviction is giving traders time to position themselves cautiously.

HBAR traders are under threat.

The future position shows a clear bearish swing. The liquidity map shows that short contracts carry more exposure than longs at key price levels. This disparity reflects traders' hopes that HBAR may face downward pressure before any sustained recovery occurs.

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However, this setup creates a potential compression factor. If HBAR escapes the downside and rises to resistance at $0.1035, it could face liquidation of nearly $5 million in short positions. Such an event forces bear traders to cover, which can lead to sudden buying pressure and short-term sentiment.

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Momentum signals on the chain present a mixed picture. Chaikin's cash flows have diverged sharply from the price's lows earlier this week. As prices continued to decline, the CMF trended higher, suggesting that selling pressure is easing rather than intensifying.

Despite this difference, there is still no proof. The CMF has yet to cross above the zero line, indicating dominance of flows. Capital continues to flow out of HBAR, albeit at a slower pace. Until this change is complete, the energy signal remains transient rather than critical.

HBAR prices may not see a rebound just yet.

HBAR is trading near $0.0903 at the time of this writing. Price action at this level does not inspire confidence among investors. Poor participation continues to limit capital flows.

The recent outlook focuses on whether HBR can break the downtrend. Continued consolidation above the $0.0901 support reduces immediate downside risk. If earnings flows begin to improve along with price stability, HBAR could head towards $0.1030 resistance. Reaching this level puts short areas under pressure and can cause leaks.

If conditions deteriorate, the risk of downsizing is looming. A break below the $0.0901 support would expose HBAR to further losses. In that case, the price could slide towards $0.0830. Continued weakness could extend the decline to $0.0751, which would completely break the bullish streak and confirm the continuation of the broader downtrend.