Hedera (HBAR): Imminent Rise Driven by Liquidity

After a slight decline of 1% over the past day, Hedera (HBAR) is showing signs of upward movement, bucking the general positive trend in the cryptocurrency market.

The altcoin has experienced a brief price retracement after a consolidation phase, which some analysts interpret as a sign of an impending uptrend.

On-chain indicators suggest that buyer interest in HBAR is returning. Reduced selling pressure indicates that Hedera may soon cross the $0.20 threshold.

Liquidity Cluster at $0.203 Fuels Optimism

The liquidity heatmap generated for HBAR highlights an important liquidity cluster at the $0.203 price level. Traders find the heatmaps extremely useful as they show the price points where many leveraged positions are at risk of liquidation. The market generally tends to move towards these liquidation zones, triggering liquidations and creating opportunities for opening new positions.

The large liquidity pool at $0.203 for HBAR shows that traders actively seek to buy or close their short positions at that level. The high liquidity concentration acts as a lure for price movements, potentially triggering a short-term rally.

HBAR maintains a positive funding rate of 0.027%, supporting a bullish outlook despite recent price weakness. The funding rate represents a smooth payment mechanism between holders of long and short positions in perpetual futures, maintaining a balance between the contract price and the spot price of the underlying asset. A positive rate indicates that long position holders are offsetting short position holders, signalling the market's expectation for a price increase.

Buying Pressure Increasing, Target at $0.23

According to the analysis of the daily chart, HBAR should gain momentum. The Chaikin Money Flow (CMF) indicator showed a slight increase today, reaching 0.06, signalling renewed buying pressure. The positive CMF value indicates that money flows into the asset, through purchase volumes, exceed those outflowing, suggesting accumulation by investors.

The growing demand for Hedera, amid recent price stabilisation, supports the possibility of HBAR reaching $0.23 if current market trends persist.

However, this bullish outlook could fail should selling pressure increase. In that case, the price of HBAR could fall below the $0.19 support level. Market participants will closely monitor price movements and on-chain metrics to see if the bullish trend in HBAR trading will continue.