HBAR’s $30 Million Short Liquidation Risk Eased by Death Cross: What Traders Need to Know

$HBAR has recently experienced a significant price correction, pulling the altcoin to a critical support level. As the market conditions continue to show weakness, the price action has left $HBAR vulnerable.

However, this downside movement might be offering short traders a chance to avoid heavy liquidation losses.

Hedera Traders Stand To Lose A Lot

The liquidation map indicates a situation of concern for short traders. Approximately $30 million worth of short contracts are poised for liquidation if the $HBAR price rises to $0.18. This could cause massive losses for traders who are betting against the asset. However, the current price range near $0.157 has provided some relief as the market struggles to breach lower support levels.

If $HBAR maintains its position above key levels, these traders may be spared the liquidation risk for now. Despite the challenging market conditions, this scenario actually provides a buffer for traders, helping them avoid significant losses.

$HBAR Liquidation Map. Source: Coinglass

The overall macro momentum for $HBAR shows signs of potential downside pressure as the cryptocurrency approaches a Death Cross. The 200-day exponential moving average (EMA) is just over 3% away from crossing the 50-day EMA.

This technical formation, when confirmed, signals a possible continuation of the bearish trend and could push $HBAR further down in the coming days.

The close proximity of these two EMAs has increased the chances of the Death Cross, which could result in further losses for $HBAR holders. The market’s lack of substantial improvement and the growing uncertainty surrounding price action contribute to the likelihood of the Death Cross forming.

$HBAR EMAs. Source: TradingView

$HBAR Price Holds Above Support

$HBAR is currently trading at $0.157, holding just above the critical support level of $0.154. While it has managed to stay above this support for now, it remains vulnerable to falling through it if bearish sentiment intensifies. A break below $0.154 would likely trigger a deeper decline, with the next support level at $0.143.

If $HBAR fails to hold the $0.154 support, a further drop could confirm the Death Cross formation. Should this scenario unfold, the price might continue downward toward $0.143, and further declines could follow, pushing $HBAR toward $0.12 or lower.

$HBAR Price Analysis. Source: TradingView

On the other hand, if $HBAR can bounce back from $0.154, a recovery rally is possible. Successfully flipping the $0.165 resistance into support could push the price toward $0.177. This movement would bring the liquidation scenario closer to reality, as short traders could face significant losses in a reversal.