HBAR Drops 3% As Death Cross Looms, $30M Shorts At Risk

HBAR, a prominent altcoin, has recently undergone a significant price correction, reaching a critical support level. The ongoing market weakness has left HBAR vulnerable to further downside movements. However, this price action might offer short traders a chance to avoid heavy liquidation losses. The liquidation map indicates that approximately $30 million worth of short contracts are at risk of liquidation if the HBAR price rises to $0.18. This scenario could result in massive losses for traders who are betting against the asset. Currently, the price range near $0.157 has provided some relief, as the market struggles to breach lower support levels. If HBAR maintains its position above key levels, these traders may be spared the liquidation risk for now. Despite the challenging market conditions, this scenario actually provides a buffer for traders, helping them avoid significant losses.

The overall macro momentum for HBAR shows signs of potential downside pressure as the cryptocurrency approaches a Death Cross. The 200-day exponential moving average (EMA) is just over 3% away from crossing the 50-day EMA. This technical formation, when confirmed, signals a possible continuation of the bearish trend and could push HBAR further down in the coming days. The close proximity of these two EMAs has increased the chances of the Death Cross, which could result in further losses for HBAR holders. The market’s lack of substantial improvement and the growing uncertainty surrounding price action contribute to the likelihood of the Death Cross forming.

HBAR is currently trading at $0.157, holding just above the critical support level of $0.154. While it has managed to stay above this support for now, it remains vulnerable to falling through it if bearish sentiment intensifies. A break below $0.154 would likely trigger a deeper decline, with the next support level at $0.143. If HBAR fails to hold the $0.154 support, a further drop could confirm the Death Cross formation. Should this scenario unfold, the price might continue downward toward $0.143, and further declines could follow, pushing HBAR toward $0.12 or lower.

On the other hand, if HBAR can bounce back from $0.154, a recovery rally is possible. Successfully flipping the $0.165 resistance into support could push the price toward $0.177. This movement would bring the liquidation scenario closer to reality, as short traders could face significant losses in a reversal. The current price action and technical indicators suggest that HBAR is at a critical juncture. Traders should closely monitor the support and resistance levels, as well as the potential formation of the Death Cross, to make informed decisions. The market's volatility and uncertainty add to the complexity of predicting HBAR's future price movements, but the current situation offers both risks and opportunities for traders.