Hedera (HBAR) is showing no signs of slowing down. The token is up over 92% month-on-month, signaling strong bullish momentum. But the story doesn’t end there.
Whale wallets are piling in, funding rates are holding steady, and the price structure shows room for a potential breakout continuation. With multiple legs of support behind this move, HBAR price could be gearing up for more.
Whale Wallet Surge Signals Confidence
Whale wallets have continued their accumulation spree. Over the past week, the number of wallets holding 1 million HBAR or more rose from 67.28% to 71.41%. Also, wallets with 10 million+ HBAR jumped from 86.29% to 91.62%. That’s a more than 5% rise in a matter of days.
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HBAR whale holdings: Hedera Watch
Such a concentrated increase in whale holdings typically reflects growing confidence in near-term price action. It also suggests that larger players are positioning themselves before a potential continuation rally.
Whale wallet data tracks the percentage of supply held by large wallets, helping measure accumulation pressure.
Funding Rate Spikes Show Aggressive Longs
The open interest-weighted funding rate for HBAR reached 0.057% on July 18, its highest level in months. As of July 21, it sits at a still-elevated 0.01%, suggesting that long positions are maintaining their dominance.
HBAR price and funding rate: Coinglass
This spike in funding rates mirrors HBAR’s recent price rally and implies that leverage is building in favor of bulls. Typically, a rising funding rate indicates aggressive long positioning. It can foreshadow continued upward momentum, especially when backed by whale accumulation.
The good thing here is that the Funding rates (despite being positive) aren’t overheated, suggesting that leveraged positions do not dominate the derivatives market. This pattern keeps the risk of a long squeeze out for now.
A long squeeze occurs when over-leveraged long positions are forced to exit as prices dip, triggering a cascade of liquidations that accelerates the price drop.
Funding rates reflect the cost of holding leveraged long vs. short positions. A positive rate means longs are paying shorts, suggesting bullish sentiment.
HBAR Price Action Hints at a Breakout Zone
From a technical perspective, HBAR is currently hovering around the 0.382 Fibonacci extension level at $0.27, after cleanly breaking above the 0.236 resistance or the $0.25 price level. This region has acted as a consolidation zone over the past few sessions, with price finding consistent support.
HBAR price analysis: TradingView
If this level holds, the next resistances lie at $0.28 (0.5 Fib) and $0.30 (0.618 Fib), followed by the $0.32 (0.786 Fib) level. A confirmed breakout from the 0.382 and 0.5 Fib levels could open up the HBAR price path toward $0.35+, which aligns with the 1.0 Fib extension and previous swing highs.
Fibonacci extension levels are used to identify potential targets or resistance zones by utilizing the previous impulse move and a subsequent price retracement. In this price chart, the $0.22 level is used as the retracement zone, as the current swing is still under development.
As $0.25 serves as one of the strongest support levels, a dip below it can invalidate the bullish trend for now. Also, if the HBAR price corrects below $0.22, the short-term trend might not remain bullish anymore.
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