Hedera’s (HBAR) price is facing a critical juncture. Recent technical analysis identifies the formation of a bearish “head and shoulders” pattern on the daily chart. This scenario increases the HBAR price drop risk if a key support level fails to hold in the coming days.
The bearish structure hinges on the “neckline” located near $0.160. According to market analysts, a confirmed break below this level would activate the structure. This projects a potential 28% decline. The bearish targets are set in the $0.113 zone and even $0.100 if liquidations intensify.
The current weakness is amplified by two main risk factors. First, the On-Balance Volume (OBV) indicator shows exhaustion. The OBV is barely holding above its ascending trendline. If buying volume subsides and the OBV breaks its trend, the bearish momentum will gain strength.
Can leverage trigger an HBAR liquidation cascade?
Second, the derivatives market shows clear vulnerability. Liquidation data indicates an excess of leveraged long positions. Long liquidations outweigh shorts by nearly 25%. This situation exposes the asset’s economy to a severe “long squeeze.” If the price falls to the $0.160 support, these forced liquidations could drastically accelerate the drop.
For now, HBAR is in a decisive zone. A bullish scenario would only reactivate if the price manages to reclaim the $0.199 level with strength. However, a complete invalidation of the bearish pattern would only occur above $0.219. Meanwhile, the $0.160 support is the only barrier holding back the HBAR price drop risk.
