Hedera's native token HBAR continues its downward trajectory despite broader cryptocurrency market strength, signaling potential trouble for investors holding long positions. Technical indicators suggest further price deterioration could trigger substantial liquidations, creating additional selling pressure in an already bearish environment.
The altcoin has struggled to maintain momentum as bearish signals accumulate across multiple technical metrics. Most notably, the Ichimoku Cloud indicator presents a concerning outlook with candlesticks consistently forming below the basis line, confirming negative market sentiment. The widening cloud formation further suggests intensifying downward pressure in the coming trading sessions.
"The expanding Ichimoku Cloud indicates that bearish momentum could continue in the short term," noted technical analysts tracking the token's performance.
HBAR currently trades at approximately $0.195, operating within a descending channel pattern that has defined its price action in recent weeks. This level represents a critical support zone that traders are watching closely, as failure to hold could accelerate the decline.
Market data from Coinglass reveals a precarious liquidation scenario developing beneath current price levels. Should HBAR drop to the critical support threshold of $0.177, approximately $13.3 million worth of long positions face potential liquidation. This would represent one of the largest single liquidation events for the token in recent months.
Such significant forced selling could create a negative feedback loop, where liquidations drive prices lower, triggering additional liquidations and further price deterioration. This cycle often leads to capitulation among traders, particularly those using leverage.
The token's underperformance appears particularly notable given the generally positive macro outlook across major cryptocurrencies. While Bitcoin and several top altcoins have shown resilience, HBAR has failed to participate in broader market uptrends, suggesting specific concerns about its near-term prospects.
If current support at $0.195 fails, analysts anticipate a swift move toward the $0.177 level, which has previously served as a strong support zone. A breakdown below this threshold would signal continuation of the bearish trend and likely result in further selling pressure as remaining bulls abandon positions.
However, not all potential outcomes appear negative. Should HBAR successfully defend the $0.195 support level, it could potentially rally toward $0.222, which would represent a breakout from the current descending channel pattern. Such a move would invalidate the bearish outlook and potentially signal a trend reversal, offering relief to investors who have weathered recent declines.
For now, traders remain cautious as technical indicators and market structure continue to favor bearish scenarios over bullish alternatives.