Hedera (HBAR) is moving within a descending wedge that has lasted for more than 10 weeks. The altcoin is now attempting to break out of this pattern, which could shift momentum in favor of the bulls.
However, such a move may come at a steep cost for short traders unwilling to adjust their positions.
Hedera Traders Could Face Losses
According to liquidation data, more than $32 million worth of short contracts could be liquidated if HBAR rallies toward its next major resistance. The key level to watch is $0.248, which sits just above the immediate resistance zone. A push beyond this range would force bears to exit, creating additional buying pressure.
This outcome could prove bullish for Hedera. Forcing shorts out of the market often discourages new bearish bets, creating space for the asset to stabilize. With fewer traders willing to short HBAR, the token could maintain upward momentum and build stronger support at higher price levels.
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The Chaikin Money Flow (CMF) is signaling growing confidence in HBAR. The indicator has been rising steadily, showing consistent inflows into the asset. Strong inflows reflect increased demand. This is essential for supporting recovery efforts and backing attempts to break free of the descending wedge.
Sustained strength in the CMF also reinforces the case for bullish continuation. As capital continues flowing into HBAR, the market structure becomes more resilient. This would counter selling pressure from traders betting against the token.
HBAR Price Awaits Breakout
At the time of writing, HBAR is priced at $0.226. The token has been consolidating within its wedge for nearly three months. A confirmed breakout would require a decisive move above $0.230, with the next resistance waiting at $0.242. Overcoming these barriers is critical for validating the bullish scenario.
If HBAR manages to breach $0.242, the liquidation map suggests $32 million worth of shorts would be wiped out at $0.248. This liquidation cascade could fuel a stronger rally, helping HBAR extend gains and stabilize at higher levels.
Failure to break out, however, would keep HBAR trapped in its current wedge. In that case, the altcoin could slip back to $0.219 support or lower, invalidating the bullish thesis and exposing traders to further downside risk.
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