Hedera (HBAR) Feels the Squeeze as Bears Pile On Short Positions

HBAR's price action hits turbulence as traders bet against its rally—because nothing says 'confidence' like Wall Street's favorite casino move.

Short interest spikes while bulls scramble for support. Will the network's enterprise-grade promises outmuscle the skeptics? Or is this just another altcoin getting chewed up by the derivatives machine?

Fun fact: The only thing rising faster than HBAR's short volume? Your average crypto VC's blood pressure during a market dip.

Modest Gains Amid a Sluggish Market

While many major cryptocurrencies have faltered in early June, HBAR stood out by climbing modestly. The 5% increase in value from June 1 reflects a degree of investor Optimism or renewed interest in the Hedera ecosystem. However, the strength behind this move appears to be waning as traders begin positioning for potential downside.

MACD Flashes Bearish Crossover

One of the most telling signs of weakening bullish momentum is coming from the Moving Average Convergence Divergence (MACD) indicator. As of the latest data, HBAR’s MACD line (blue) has crossed below the signal line (orange), a classic indicator of a bearish reversal in momentum.

The MACD is a momentum oscillator used by traders to evaluate changes in trend strength and direction. A crossover where the MACD line dips below the signal line typically suggests that bullish energy is tapering off and selling pressure is gaining strength. This development casts doubt on the sustainability of HBAR’s recent rally.

Futures Market Turns Bearish

Bearish sentiment is also becoming more evident in the derivatives market. Data from Coinglass shows HBAR’s long/short ratio sitting at 0.95, meaning more traders are opening short positions than longs. A long/short ratio below 1 implies that market participants are positioning for a price decline rather than an upward breakout.

This shift suggests that while the spot market shows modest gains, institutional and high-volume traders in the futures space are preparing for a possible correction. When short demand grows even as prices rise, it often signals a lack of confidence in continued upward momentum.

Price Levels to Watch: Resistance at $0.19, Support at $0.15

Technically, HBAR now faces stiff resistance NEAR the $0.19 level. This ceiling could prove difficult to breach, especially as buying pressure fades and short-sellers tighten their grip on the market. If HBAR fails to break through this resistance, the next move may be downward.

Should selling momentum increase, the first major support zone lies around $0.15, a key level that previously served as a launchpad for rebounds. A drop below this point could open the door to a deeper correction toward $0.12, a level last tested during broader market dips earlier in 2025.

Conversely, if bullish momentum picks up and the $0.19 resistance is broken decisively, HBAR could make a run toward $0.20, a level that WOULD represent strong psychological and technical resistance. However, achieving this would likely require a broad market recovery or positive news specific to Hedera’s development ecosystem.

Bearish Bias Gains Ground Despite Price Stability

While the token’s price remains relatively stable for now, the underlying market mechanics suggest that the current bullish trend is on shaky ground. The combination of a bearish MACD crossover and an increase in short interest paints a cautious picture.

The divergence between spot price action and derivatives sentiment is often a precursor to price volatility. In HBAR’s case, this could translate into a sharp correction if traders begin to offload positions in anticipation of a reversal.

Final Thoughts

Hedera’s HBAR token has managed to defy the odds in early June, climbing while the broader crypto market struggles. But that strength may be short-lived. Technical signals and futures market positioning indicate that bearish forces are gathering momentum.

Whether HBAR can hold above current levels or not will depend on whether buyers can reclaim control and push through the $0.19 resistance zone. If not, the road to $0.15—and possibly lower—could come into view quickly.