From Coinpedia · By Sahana Vibhute
Story HighlightsHBAR’s rising open interest signals increased trader activity, while slightly positive funding suggests a modest long bias as the market tests key resistance.
A return to $0.10 remains possible if buyers regain momentum and sustain the rally, but continued selling pressure could delay the recovery.
After a significant upswing, the Hedera (HBAR) price has been facing strong upward pressure. While the bulls are trying hard to get the rally back on track, the bears are making their job harder. The HBAR price has given back a large part of the recent gains and is now struggling to move above the $0.09 resistance. Besides, rising open interest and the potential for short liquidations are expected to shoot up volatility. The bigger question now is whether HBAR can overcome selling pressure and reach above $0.10, as bears are positioned to push the rally lower.
Is HBAR Heading for a Short Squeeze?
Hedera’s liquidation map highlights an important point: the bears are expected to face pressure if it extends its recovery. The price is currently hovering around $0.0861, and there is growing concentration of potential short liquidations above this range. The cumulative short-liquidation curve rises sharply above $0.09, pointing to a larger pool of potential liquidations at higher prices. Therefore, if buyers push the rally above this range, bearish traders may be forced to close their positions. This could attract more buying pressure and accelerate the rally towards a higher range, triggering a short squeeze.
The $0.095 to $0.10 region stands out as another area to watch, with substantial potential liquidation exposure. A sustained breakout above $0.09 could bring this zone into focus and improve the chances of rising above $0.10. For now, the liquidation data offers a potential bullish catalyst rather than confirmation of a trend reversal.
Hedera Bears Challenge the Recovery Rally at $0.09
HBAR price is struggling to regain its bullish momentum after its sharp rally toward $0.13, as sellers have pushed the price lower. With HBAR closing at $0.085 in the latest candle shown, both price action and derivatives data suggest that the next move could be crucial for the recovery. The open interest has climbed to nearly $389.72 million, approaching the highs seen during the late-September rally.
If price breaks above resistance while open interest continues to rise, it could indicate that new positions are supporting the move.
Besides, the funding rate stands at 0.0059%, indicating that perpetual futures are currently tilted slightly toward long positioning, with long traders generally paying short traders. From a technical perspective, $0.08917 is the first major hurdle for the buyers, and a daily close above the range could open the way toward $0.097 and the psychological $0.10 mark. On the downside, HBAR needs to hold the rising trendline near $0.085; losing it could expose support at $0.07938.