HBAR surges 26% to five-month high, faces 12% liquidation risk

HBAR, the native token of the Hedera Hashgraph network, has recently reached a five-month high of $0.27, driven by strong bullish momentum. This surge reflects a significant increase in investor interest and confidence in the token's potential. However, the Relative Strength Index (RSI) exceeding 70 indicates that the market is currently overbought, suggesting a potential price correction in the near future. Overbought conditions typically signal that traders may soon engage in profit-taking, which could lead to increased selling pressure and a short-term pullback in HBAR's price.

According to data from COINOTAG, a drop in HBAR's price to $0.24 could trigger up to $46 million in liquidations. This liquidation risk underscores the delicate balance between continued gains and sharp pullbacks. If the price falls below this critical support level, it could activate a cascade of forced liquidations, intensifying downward pressure and potentially undermining market confidence. This scenario could challenge the sustainability of the current rally and emphasize the need for cautious trading strategies.

Currently, HBAR is testing the $0.26 support level, which is crucial for maintaining its bullish trajectory. A firm hold above this price point could provide the stability needed to push toward the psychological resistance at $0.30, extending the token’s upward momentum. However, failure to maintain $0.26 may precipitate a decline to $0.24, activating significant liquidation events. This could lead to a further drop to around $0.22, eroding recent gains and dampening short-term investor confidence.

Should bullish market conditions persist, HBAR might rebound from $0.26 and challenge the $0.30 resistance level once again. Such a recovery would invalidate bearish projections and reinforce the ongoing uptrend on daily charts, encouraging renewed investor optimism. Traders should monitor the $0.26 support level closely, as its breach could trigger a sharp correction fueled by forced liquidations. Conversely, sustaining this support may pave the way for further gains toward $0.30. Maintaining a balanced approach with attention to key technical levels will be essential for navigating HBAR’s near-term price action.