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HBAR has surged to a five-month peak at $0.27, reflecting strong bullish momentum but facing significant liquidation risks if prices fall below key support levels.
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The Relative Strength Index (RSI) exceeding 70 signals overbought conditions, indicating a potential price correction driven by profit-taking among traders.
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According to COINOTAG data, a drop to $0.24 could trigger up to $46 million in liquidations, underscoring the precarious balance between continued gains and sharp pullbacks.
HBAR hits a 5-month high at $0.27 amid bullish momentum, but overbought RSI and $46M liquidation risk at $0.24 suggest possible price correction ahead.
HBAR Traders Could Be In Trouble Amid Overbought RSI and Liquidation Risks
HBAR’s recent rally has propelled the token to $0.27, marking its highest level in five months. However, the Relative Strength Index (RSI) remaining above 70 for an extended period signals overbought market conditions, which historically precede price pullbacks. This technical indicator suggests that traders may soon engage in profit-taking, potentially leading to a short-term correction.
While the broader crypto market’s positive sentiment has supported HBAR’s ascent, the risk of a cooldown is tangible. Overbought conditions often prompt traders to secure gains, which can result in increased selling pressure. This dynamic could disrupt HBAR’s upward momentum and introduce volatility in the near term.
HBAR RSI. Source: TradingView
Beyond RSI signals, liquidation data presents additional concerns. A cluster of potential long liquidations lies just below the current price, with a critical threshold at $0.24. Should HBAR breach this level, it could trigger approximately $46 million in long liquidations, intensifying downward pressure as leveraged positions are forcibly closed.
This liquidation cascade could exacerbate losses and undermine market confidence, particularly among retail investors. The resulting sell-off might challenge the sustainability of the current rally, emphasizing the need for cautious trading strategies.
HBAR Liquidation Map. Source: Coinglass
Can HBAR Price Rise Continue? Support Levels and Market Sentiment in Focus
HBAR is currently testing the $0.26 support level, which is crucial for maintaining its bullish trajectory. A firm hold above this price point could provide the stability needed to push toward the psychological resistance at $0.30, extending the token’s upward momentum.
Conversely, failure to maintain $0.26 may precipitate a decline to $0.24, activating significant liquidation events. This scenario could lead to a further drop to around $0.22, eroding recent gains and dampening short-term investor confidence.
HBAR Price Analysis. Source: TradingView
Should bullish market conditions persist, HBAR might rebound from $0.26 and challenge the $0.30 resistance level once again. Such a recovery would invalidate bearish projections and reinforce the ongoing uptrend on daily charts, encouraging renewed investor optimism.
Conclusion
HBAR’s recent surge to a five-month high reflects strong bullish sentiment but is tempered by technical indicators signaling overbought conditions and significant liquidation risks. Traders should monitor the $0.26 support level closely, as its breach could trigger a sharp correction fueled by forced liquidations. Conversely, sustaining this support may pave the way for further gains toward $0.30. Maintaining a balanced approach with attention to key technical levels will be essential for navigating HBAR’s near-term price action.
