HBAR Price Nears Breakout, But Liquidations Raise Concern

Hedera Hashgraph (HBAR) chain has been making waves in the decentralization and tokenization sectors. The recent mini altcoin season’s rally reflected these strengths in its price action.

However, the HBAR price has been weak since the end of July. A rise in DEX volume drove the recent surge in the Hedera price. A massive rally may be on the horizon.

However, long/short liquidation data suggests the move could be delayed or even invalidated. Meanwhile, we will elaborate on these points as the cryptocurrency rose by over 6% on the day.

HBAR Price Actions Eyes Breakout

On the charts, the HBAR price was coiling inside a descending trend channel on the daily timeframe. Its price action was hinting at a potential breach of the upper resistance of the pattern. This could result in a bullish structure shift.

The consolidation has been in place since late July, when it hit $0.30, invalidating the then bearish structure. The lowest Hedera price was $0.22. This acted as the neckline for the double bottom at $0.13.

This floor price resulted in a 197% surge in December 2024. It was a period when the entire cryptocurrency market was in an uptrend.

According to the token’s trading volume data on CoinMarketCap, HBAR price saw a surge of about 39% on the day. This reading rhymed with the surge that took the price to just below this key resistance level.

Bulls had to overcome bearish pressure at the crucial $0.24 level. This was essential for HBAR to align with the broader market’s upward trend.

In the event of a breakout, the Hedera price could target the previous year’s high, currently around $0.40. This represents a 75% hike in price action.

Still, bears could remain unshaken, which would push back the current momentum. This would extend the accumulation, tightening the movement. The bigger the compression, the bigger the breakout would be.

Hedera Hashgraph DEX Volume Surges

In the daaps of the chain, HBAR demonstrated strength in the third quarter of the year, despite struggles with prices. DefiLlama data showed DEX volume more than doubled in Q3 compared to the Q1 reading.

DEX volume for HBAR also reached a new peak of over $7 Billion during this period. At the start of the year, this value was slightly above $3 Billion. The movement was steep, asserting the increased use of decentralization on the Hedera blockchain.

These signals were bullish by nature, as they suggested increased activity. Despite the potential breakout in HBAR price action following the positive market sentiments, a glitch occurred.

Long Liquidations Could Hinder HBAR Price Breakout

The distribution data of long and short liquidations raised concerns about the breakout. Hedera Hashgraph, Stellar Lumens (XLM), and Avalanche (AVAX) experienced over 85% of their long liquidations.

Specifically, HBAR had the highest value at 91.2%, making it the only altcoin in the 90th percentile. This meant that any upward movement would be a hard battle for bulls.

However, covering the shorts might provide relief, but the most likely outcome was either continued consolidation or a breakdown.

To catch the right move, patience was paramount for HBAR to give more data. A run on the longs resting below the most recent prices would pick up the liquidity to provide an upside rally.

This would allow the formation of short liquidations above, which would become the following target zones. Hedera price was attempting to breach the upper resistance. However, these massive long liquidations could delay or invalidate the breakout.