Hedera ( HBAR ) may break out of the long term pattern, threatening 32 million USD short positions.

Hedera (HBAR) has been moving in a falling wedge pattern for over 10 weeks, and currently this altcoin is attempting to break out of that framework. If successful, the trend could reverse strongly in favor of the bulls.

However, this scenario also poses significant risks for short sellers (Short), as they risk paying a high price if they do not adjust their position in time.

Loss risk for Hedera traders

According to liquidation data, over 32 million USD worth of short contracts are at risk of being “wiped out” if HBAR breaks above the next important resistance zone. The key point is at 0.248 USD – just above the current resistance layer. A decisive breakout will force the bears to flee, thereby triggering additional buying pressure.

This scenario could become a catalyst that reinforces the upward trend of Hedera. As the bears are forced to exit their positions, the sentiment to open additional short positions will weaken, creating a gap for the market to stabilize and build a new support zone at a higher price level.

HBAR liquidation map | Source: CoinglassNotably, the Chaikin Money Flow (CMF) is also sending positive signals. The steady increase of CMF reflects continuous money flowing into HBAR – a sign that real demand is increasing, an essential factor to support the recovery process and escape from the falling wedge pattern.

The sustainable strength of the CMF further reinforces confidence in the ability to extend the upward trend. The strong inflow of capital into HBAR not only solidifies the market structure but also helps counteract the selling pressure from the bearish speculators.

CMF of HBAR | Source: TradingView## HBAR price awaits breakout

At the time of writing, HBAR is fluctuating around the mark of 0.226 USD after nearly three months of accumulation in a falling wedge pattern. To confirm a true breakout, the price needs to decisively exceed the threshold of 0.230 USD, with the next resistance at 0.242 USD. Only by overcoming these barriers can the bullish scenario have a solid foundation.

If HBAR breaks through 0.242 USD, liquidation data shows that approximately 32 million USD in short positions (Short) will be wiped out at the 0.248 USD mark. The “short squeeze” effect could become a catalyst, triggering a stronger bullish wave and helping HBAR maintain stability in the high price range.

Daily HBAR/USDT chart | Source: TradingViewConversely, if it fails to break out, HBAR is likely to remain trapped in the falling wedge pattern. In that case, this altcoin risks retreating to the support level of 0.219 USD or lower, invalidating the bullish thesis and exposing investors to the risk of a deep correction.

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