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Hedera ($HBAR) price is down 4.27% in the past 24 hours and almost 8% this week, trading near $0.16 after losing momentum from last week’s brief rebound. The sideways movement shows hesitation, but two critical trends suggest that the pullback may not last.
If the $0.16 support holds and the price manages to reclaim $0.19, the $HBAR price could still recover. Here is how.
Selling Pressure Fades as Bearish Bets Stack Up — Short Squeeze Likely?
The amount of $HBAR moving to exchanges has dropped sharply, which usually signals investors are holding instead of selling. Between October 13 and 20, weekly exchange inflows fell from $6.13 million to $1.47 million — a 76% decline.
A similar pattern appeared in late June, when inflows collapsed from $7.72 million to $632,000 (a 90% drop). Within a month, $HBAR’s price almost doubled from $0.13 to $0.29.
$HBAR Netflows Turning Towards Buyers">
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At the same time, traders in the futures market are heavily positioned for a drop. Short bets total $44.88 million, compared to only $14.11 million in long positions. This means that 76% of the traders expect more downside, but that imbalance can quickly backfire.
Many short positions will be forced to close if the $HBAR price closes above $0.19, where the biggest liquidation cluster sits. A move of about 15% from current prices could trigger buying pressure (via short squeeze) as those shorts unwind.
$HBAR Liquidation Map">
That mix — less selling on exchanges and too many traders betting against $HBAR — could fuel a surprise rally if the price holds above $0.16 long enough to test higher levels.
$HBAR Price Needs to Hold $0.16 Before Bulls Can Take Over
$HBAR’s price structure still leaves room for recovery, but everything now depends on how it behaves around $0.16 and $0.19. The token continues to trade inside a broadening wedge — a formation where both trendlines move apart, often signaling growing volatility and a potential breakout if buyers regain control.
If $HBAR holds above $0.16 and breaks past $0.19, it could climb toward $0.23. A close above $0.23 would mean the price has moved beyond the upper trendline of the broadening wedge. That would potentially trigger the short-squeeze event as leveraged positions unwind. That breakout could pave the way toward $0.25 and $0.30, areas where previous rallies have stalled.
The Relative Strength Index (RSI) — which tracks the speed and strength of price movement — also supports this view. Between June 22 and October 10, $HBAR’s price made lower lows while the RSI formed higher lows.
$HBAR Price Analysis">
This bullish divergence typically hints that selling pressure is fading even though the price hasn’t yet increased. Combined with a broadening wedge, it strengthens the case for a reversal once $HBAR price confirmation arrives.
However, the wedge’s lower trendline is weak since it has only two clear touchpoints. If $0.16 fails and $0.15 breaks, that boundary could give way, dragging $HBAR down toward $0.12 and invalidating the rebound setup.
The post $HBAR Price Tests $0.16 Support — One Move Could Trap the Bears appeared first on BeInCrypto.
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