HBAR Dives 17% Amid $2.7M Long Liquidations and Wider Crypto Sell-Off

HBAR, the native token of the Hedera Hashgraph platform, has experienced severe volatility as the futures market witnessed the liquidation of long positions totaling $2.7 million in the past 24 hours, with 88% attributed to bullish traders. This forced selling has pushed the price of HBAR down by 17% since Sunday and 9% in a single day, bringing it to a critical support level of $0.24. The liquidation of leveraged long positions signals widespread bearish sentiment, as traders who had borrowed capital to bet on price increases are being forced out of their positions due to declining prices [1].

The dominance of long liquidations over short ones indicates that the bulk of the selling pressure is coming from those who had anticipated price gains. This dynamic often triggers a self-reinforcing cycle, as automated systems initiate further sell-offs when stop-loss or margin triggers are activated. The broader implication is a rapid erosion of confidence, especially when such liquidations reach levels above 80%, as has been the case with HBAR [1].

Institutional activity has also shifted toward the sidelines. The token’s Smart Money Index (SMI) has fallen to 0.98, reflecting that experienced traders and institutional capital are reducing their exposure. A reading below 1.0 typically indicates net selling pressure from sophisticated market participants, who are often seen as leading indicators of future price movements. This trend suggests that HBAR may remain under pressure until there is a significant reversal in sentiment or a positive catalyst emerges [1].

The selloff in HBAR is not isolated but part of a wider downturn in the crypto market. Tokens such as BONK, SHIB, and FIL have also seen significant declines amid increased trading volumes. For example, BONK dropped nearly 5% in a 24-hour period, while SHIB fell 6%, breaking below key support zones. Filecoin (FIL) fell over 6% as well, breaching the $2.38 level. The CoinDesk 20 index also declined 2.5%, with all components trading lower, including Bitcoin, which fell 1.3% in the same period [1].

The macroeconomic environment has further intensified the bearish pressure on cryptocurrencies. The U.S. added just 73,000 jobs in July—below expectations—raising questions about the strength of the labor market and the potential for Federal Reserve rate cuts. A stronger U.S. dollar has also weighed on risk assets, with investors shifting capital toward safer assets. The increased uncertainty surrounding monetary policy has led to heightened volatility and a lack of a safe-haven narrative for even the most liquid crypto assets [1].

Institutional participants appear to be taking a more defensive stance as well. Increased trading volumes at key price levels for assets like BONK and FIL suggest that larger players are either reducing their holdings or hedging positions in anticipation of potential macroeconomic developments. This behavior is often a precursor to major market shifts and can accelerate price declines if not countered by significant buying interest [1].

For HBAR, the path forward remains uncertain. The token is currently trading just above the critical $0.22 support level, which has historically acted as a floor. A break below this level could trigger further algorithmic selling and exacerbate the downward spiral. On the other hand, a resurgence in buying interest might push the price toward the $0.26 resistance level. However, the current combination of futures market stress and institutional exit indicates that upward momentum will be difficult to maintain without a major positive catalyst [1].

The broader implications of HBAR’s sharp correction are significant in a highly interconnected crypto market. High long liquidation in one asset can amplify bearish momentum across the entire sector, as investors reassess risk and rebalance portfolios. Until macroeconomic conditions improve or on-chain buying interest surges, the likelihood of a sustained reversal remains low. Market participants are advised to closely monitor key price levels and volume dynamics for potential turning points in the near term [1].

Source: [1] title: News - OneBitco (url: https://onebitco.com/press)