Hedera Hashgraph‘s native token, HBAR, has taken a severe hit this week, plunging by more than 17% since Sunday. Amid a broader decline in crypto market sentiment, HBAR has become one of the latest altcoins to suffer sharp losses. In the last 24 hours alone, the token has tumbled another 9%, amplifying the pain for bullish traders holding long positions.
Crypto Liquidation Heatmap. Source: Coinglass
On-chain metrics and futures market data now paint a grim picture for HBAR in the short term, suggesting that the bearish grip is tightening. A spike in long liquidations and a decline in institutional interest underscore the growing pessimism surrounding the token.
Long Liquidations Dominate Futures as Bulls Get Wiped Out
Data from derivatives platform Coinglass reveals that long liquidations on HBAR futures have surged dramatically. Of the total $2.94 million in liquidations recorded in the last 24 hours, a staggering $2.70 million came from long positions—marking a dominance rate of over 88%, according to Glassnode.
HBAR Futures Long Liquidations Dominance. Source: Glassnode
This spike in long liquidations dominance indicates that most of the forced sell-offs are from traders who bet on HBAR’s price rising. With the token continuing its downward slide, bullish leverage is being systematically flushed from the system. Analysts note that such extreme liquidation events can exacerbate price declines, creating a self-reinforcing cycle of fear and selling pressure.
Glassnode’s Futures Long Liquidations Dominance metric has now crossed 88%, one of the highest figures recorded this week for any major altcoin, highlighting the overwhelming bearish pressure battering HBAR bulls.
Smart Money Steps Away as Confidence Erodes
Beyond retail panic and leverage shakeouts, HBAR is also losing the confidence of seasoned investors. According to the Smart Money Index (SMI), a metric that tracks the buying and selling patterns of experienced or institutional investors, smart money has been steadily exiting the HBAR market.
HBAR SMI. Source: TradingView
Since Sunday, the SMI for HBAR has declined to 0.98, reflecting subdued afternoon buying, typically associated with institutional interest. A falling SMI suggests that informed traders are increasingly stepping away, either taking profits or cutting losses ahead of further volatility.
The SMI works by comparing intraday trading patterns: it watches for morning selling (dominated by retail) and afternoon buying (led by institutions). When the index drops, it signals a retreat by smart money—a bearish indicator for the token’s near-term performance.
Key Support at $0.22 in Focus as Price Hovers at $0.24
HBAR is currently trading at $0.24, just above a critical support level at $0.22. This price zone has historically provided a safety net for the token, but with momentum tilting heavily bearish, traders are now eyeing a possible breakdown.
HBAR Price Analysis. Source: TradingView
If the $0.22 level fails to hold under increasing sell-side pressure, HBAR could see a steep decline toward the next major support at $0.18. Technical analysts caution that breaching this level could open the door to further downside in the absence of renewed buying interest.
On the flip side, a recovery in broader market sentiment or a renewed influx of capital could spark a rebound. In that case, HBAR might challenge the $0.26 resistance mark, which has acted as a psychological ceiling in recent weeks.
Volatility Ahead as Bulls Seek Reentry Point
HBAR’s recent price action reflects a classic scenario of bullish overexposure followed by aggressive liquidations. With long positions getting wiped out and institutional players stepping back, the market is currently in reset mode.
While the token clings to its $0.24 handle, traders will be closely watching support at $0.22. A bounce from this level could provide an opportunity for bulls to regroup, but failure to hold may usher in a deeper correction.
