HBAR's Bullish Divergence Signals Potential $4M Short Squeeze Opportunity

Hedera (HBAR) is currently trading at $0.10, up 5.45% over the past 24 hours, as technical indicators reveal compelling bullish signals beneath the surface. While the token recently posted a lower low, an important divergence in momentum metrics suggests that selling pressure is weakening—a pattern that often precedes significant reversals in altcoin markets.

Money Flow Index Reveals Bullish Divergence As Selling Pressure Fades

The Money Flow Index (MFI) is now printing a bullish divergence against HBAR’s recent price action. This divergence occurs when the price moves to a lower low while the momentum indicator climbs higher—a classic sign that buyers are gaining confidence even as bears appear to be losing conviction. When an MFI bullish divergence develops during a price decline, it typically reflects reduced selling urgency among traders.

This technical signal matters because MFI bullish divergence frequently precedes trend reversals in cryptocurrency markets. The divergence suggests that while HBAR’s price has retreated, the underlying money flows tell a different story. Investors appear to be moderating their distribution activity, which may allow the token to stabilize and mount a recovery attempt. From a trading perspective, this accumulation phase often serves as the foundation for stronger moves higher.

Short Liquidation Levels Target $4.34 Million Breakout Catalyst

HBAR trades within a descending broadening wedge pattern, a structure that often signals potential bullish breakouts. The immediate resistance level sits at $0.0938, with a critical technical hurdle at $0.1005. If the token decisively clears these zones, liquidation data reveals significant upside fuel.

According to Coinglass, short positions are heavily concentrated near the $0.1012 level. A confirmed move above this threshold would likely trigger approximately $4.34 million in forced short liquidations. When bearish traders are stopped out at these levels, their forced buying often accelerates upward momentum and reinforces breakout structures—particularly in volatile altcoins like HBAR. This creates a self-reinforcing cycle where technical breakouts are amplified by cascading liquidations.

The liquidation map indicates that most short liquidations cluster up to the $0.1012 zone, making it a natural pressure point for bulls to target first.

Bitcoin Remains The Wild Card For HBAR’s Rally

Despite the improving technical setup, one major risk factor looms over HBAR’s bullish thesis: Bitcoin’s behavior. Hedera has shown increasing correlation with BTC over recent months, meaning the token tends to follow Bitcoin’s directional moves regardless of its own internal strength.

Bitcoin is currently priced at $73.48K with a 24-hour gain of 7.24%, providing tailwinds for HBAR. However, the historical correlation is tight. Between June and July 2025, a brief period of divergence occurred when Bitcoin advanced while HBAR moved sideways—but outside that window, price behavior remained largely aligned. With correlation now strengthening, HBAR could face headwinds if Bitcoin fails to sustain upward momentum or enters a correction phase.

This dependency means that even a valid technical breakout could stall if Bitcoin momentum weakens, making BTC direction a critical variable to monitor.

Path To $0.1300: What HBAR Needs To Confirm Breakout

For HBAR to confirm a sustainable bullish breakout, the token must flip $0.1005 into support and decisively breach $0.1071. Clearing these levels would strengthen the overall outlook and open the path toward $0.1300, representing a meaningful recovery from recent losses. However, $0.1071 remains the primary short-term objective before any extended rally becomes credible.

Conversely, failure to overcome $0.0938 resistance or loss of the $0.0855 support level would increase downside risk. A drop toward $0.0780 would confirm continued consolidation and delay any bullish breakout scenario. The current price of $0.10 positions HBAR near critical decision points, making the next few trading sessions pivotal for determining which direction technical momentum favors.