HBAR, the native token of Hedera, has been experiencing a steady uptrend recently, attracting the attention of investors.

The price surge has contributed to increased trading activity, but for traders, especially those holding short positions, this could lead to significant liquidations.

HBAR, the native token of Hedera, has been experiencing a steady uptrend recently, which has brought the altcoin into the spotlight and attracted the attention of investors. The price surge has also contributed to increased trading activity, but for traders, especially those holding short positions, this could lead to significant liquidations.

While the altcoin is expected to continue its rise, the situation may become challenging for those who bet against it.

HBAR Traders Are In Danger

The Chaikin Money Flow (CMF) indicator shows strong inflows into HBAR, signaling that investor sentiment is heavily tipped in favor of the asset. The CMF has bounced back above the zero line for the first time since December 2024, showcasing the overwhelming demand that is driving up the token’s price.

Chart: TradingView

These inflows indicate that investors continue to funnel their funds into the asset, providing a strong foundation for further price increases. With the CMF turning positive, the likelihood of sustained growth for HBAR is heightened, especially if the broader market maintains its bullish tone, which would allow for a sustained period of inflows.

However, the liquidation map for HBAR, which tracks traders who bet against the asset, indicates that they could face significant losses if the token continues on its current upward trajectory. At present, HBAR’s price is hovering at around $0.19, not far from the key resistance level at $0.22.

If HBAR manages to break through this resistance, approximately $70 million worth of short positions could be liquidated, placing additional upward pressure on the token’s price and rendering it even more bullish. This scenario highlights the intense battle between bullish investors, who are pushing for higher prices, and bearish traders, who are attempting to pull the token down.

Short traders who bet against HBAR are now in a precarious position, as the broader market sentiment is pushing the altcoin to new highs. The increasing momentum, fueled by the strong inflows mentioned earlier, will likely catch many short positions off guard, leaving them with no choice but to liquidate their positions.

If this liquidation occurs, it could lead to a rapid surge in the price of HBAR, further solidifying its bullish outlook and rendering it less vulnerable to bearish outlooks.

HBAR Price Continues Its Incline

In other news, HBAR is currently trading at $0.194, just below the significant resistance level of $0.200. The altcoin has shown consistent growth over the past month, and with the current positive market sentiment, it is likely to continue rising. A successful break above $0.200 could confirm the bullish momentum and open the path for further gains.

Should HBAR manage to flip $0.200 into support, a rise to $0.220 would likely follow, triggering the $70 million in short liquidations. This would create additional upward pressure, accelerating HBAR’s price move and potentially pushing it higher in the short term.

However, if HBAR fails to maintain its upward trajectory and falls below the uptrend line, the price could slip quickly and reach the next support at $0.182. A break below this level could open the door for a decline toward $0.167, invalidating the current bullish outlook.

Therefore, traders should keep a close eye on these key levels to determine the next steps for HBAR’s price action.