HBAR liquidation risks surge amid rally: $46m at stake if price falls

HBAR liquidation risks are rising sharply as Hedera’s price rally hits critical resistance levels. Despite bullish momentum, HBAR liquidation risks loom due to overbought technicals and mounting leveraged positions.

Analysts warn that HBAR liquidation risks could trigger a $46 million wipeout if the price dips below key support.

With historical patterns aligning, HBAR liquidation risks are now impossible for traders to ignore.

HBAR liquidation risks are rapidly escalating as the token trades near five-month highs. While Hedera (HBAR) is riding a bullish wave at $0.27, a deeper look into market signals reveals potential trouble ahead, especially for leveraged traders sitting on over $46 million in long positions.

After a stellar seven-day rally that pushed HBAR’s price toward the psychological $0.30 level, traders are celebrating the surge. But beneath the optimism lies a volatile setup that could flip quickly.

RSI screams overbought — Is a pullback coming?

The HBAR liquidation risks narrative grows stronger with technical indicators flashing warning signs.

The Relative Strength Index (RSI), a widely-followed momentum metric, has stayed above 70 for over a week, firmly placing HBAR in overbought territory.

“Historically, when RSI remains above 70 for an extended period, a pullback is not just possible—it’s probable,” said Katie Stockton, Founder of Fairlead Strategies.

“HBAR could be reaching a local top, and profit-taking may soon outweigh momentum.”

This overbought condition often signals short-term corrections, and with $46 million in long positions at risk, the selloff could cascade.

$46 million liquidation risks if price drops below $0.24

According to data from Coinglass, HBAR liquidation risks intensify significantly if the token dips to $0.24.

At that level, long liquidations could snowball, putting $46 million in positions at risk.

“That kind of liquidation pressure creates a domino effect,” warned Michael van de Poppe, CEO of MN Trading. “If HBAR touches $0.24, it’s not just a number—it’s a cliff.”

This would likely trigger forced selling, compounding the downward pressure. In such an event, HBAR could tumble further to $0.22, erasing recent gains and bruising investor confidence.

Positive momentum still in play — But time is ticking

Despite the HBAR liquidation risks, momentum remains intact. HBAR has successfully flipped the $0.26 level into support, which could become a launchpad toward reclaiming $0.30, a level not touched in five months.

If broader market sentiment continues to trend positively, HBAR may defy bearish signals and climb higher. But analysts remain cautious.

“Support at $0.26 is encouraging,” noted Ali Martinez, on-chain analyst at IntoTheBlock. “But if that breaks, the market may see rapid long liquidations—especially in high-leverage positions.”

The double-edged sword of bullish sentiment

Traders should remember that while rallies create optimism, they also set traps. The HBAR liquidation risks are partly fueled by an aggressive rise in open interest.

As HBAR surged, so did leveraged longs—often a prelude to a brutal shakeout.

“Bull markets climb stairs, but liquidation events take the elevator down,” remarked Benjamin Cowen, founder of Into The Cryptoverse.

“HBAR traders should have tight stops or be ready to de-risk quickly.”

A failure to hold $0.26 could quickly unravel the structure that currently supports the bullish bias. In that case, retail traders—who tend to enter late—may find themselves caught in the storm.

Can HBAR avoid the trap?

For now, the best-case scenario would be a consolidation phase that allows indicators like the RSI to cool off without a sharp price decline. This would reduce HBAR liquidation risks while preserving upside potential.

On the flip side, even a mild correction could have outsized impacts due to the heavy concentration of leveraged longs sitting just beneath current levels.

The Hedera token is undeniably in a strong uptrend, but the HBAR liquidation risks cannot be ignored.

With $46 million in long positions vulnerable to a mere $0.03 drop, the market is skating on thin ice. While the rally has legs, traders would do well to heed the technical warnings and protect gains.

In crypto, euphoria often precedes turbulence, and HBAR may be next in line for a volatility test.