HBAR's Liquidation Heatmap Reveals $6 Million in At-Risk Long Positions as Technical Overbought Signals Mount

The Hedera (HBAR) market is sending mixed signals. While recent price action has attracted aggressive traders into long positions, on-chain data paints a concerning picture for those betting on continued upside. The liquidation heatmap tells the story: a significant cluster of stop-losses sits clustered between $0.122 and $0.124, representing approximately $6.23 million in leveraged exposure ready to unwind at a moment’s notice.

When Leverage Becomes a Double-Edged Sword

Derivatives positioning reveals the crux of the problem. Traders are heavily concentrated on the bullish side, yet HBAR continues to dance around the $0.126 level—stubbornly refusing to break past the $0.130 resistance that has proven insurmountable for the past six weeks. This gap between bullish conviction and price action creates a precarious setup. Should selling pressure intensify and HBAR slip toward those liquidation levels, a cascade of forced selling would likely accelerate declines, trapping late buyers and wiping out thin-margined positions.

Momentum Indicators Suggest Exhaustion, Not Strength

Adding to the bearish backdrop, the Money Flow Index has ventured deeper into overbought territory, recently crossing above 80.0—a threshold that historically precedes corrective pullbacks rather than sustained rallies. This metric combines volume and price action to measure conviction behind price moves. When MFI remains elevated for extended periods, markets frequently reverse as buying pressure fails to sustain itself. For HBAR, this suggests the recent advance may be closer to exhaustion than continuation.

What Could Tip the Scales?

The path forward remains binary. A breakdown below $0.125 would validate bearish concerns, potentially dragging HBAR toward the $0.120 support and triggering the liquidation heatmap’s $6.23 million in long liquidations. Conversely, if spot demand strengthens or broader market conditions improve, a decisive push above $0.130 would break the six-week downtrend and open the door to $0.141. For now, traders are waiting at a crossroads—one where the liquidation heatmap serves as a grim reminder of the leverage concentrated on the wrong side of a key technical level.