Hedera Token Faces Bearish Pressure — Break Above Resistance Could Trigger Squeeze
Hedera’s native token HBAR remains in a prolonged downtrend, weighed down by weak demand, declining volume and broader crypto market pressure. The token has slid sharply from previous highs and is trading near critical support levels after recent losses, reflecting continued bearish sentiment across derivatives markets.
Derivative data from futures platforms show a bearish skew, with short positions dominating and exposing traders to liquidation risk if price structure shifts. Some technical analysts highlight that a break above key resistance (near recent trend barriers) could place a portion of short contracts at risk of liquidation, potentially triggering a short squeeze and short-term rebound. However, sustained upside confirmation has yet to materialize, keeping sentiment cautious.
On the downside, failure to break above short-term resistance and further erosion of support could extend losses toward lower price zones, consistent with broader bearish setups identified by technical indicators. Mixed price predictions emphasize significant volatility ahead, with both squeeze and further decline scenarios plausible if key levels fail or hold.
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