The HBAR token has experienced a continuous decline, falling below a pivotal support level as it grapples with significant market challenges. Over the last six days, Hedera has seen its price hit its lowest point since October 10, down 63% from its peak in September. This decline coincides with a broader market retreat, notably as Bitcoin and various altcoins face pressure ahead of the anticipated Bank of Japan (BoJ) interest rate decision.
Recent data indicates that the total market capitalization of all cryptocurrencies has fallen below the critical threshold of $3 trillion, further exacerbating the challenges for Hedera. Compounding the issue, the growth of the Hedera ecosystem has stalled significantly, as shown by data from DeFi Llama, which reveals that no new decentralized applications (dApps) have emerged over the past few months. The total value locked within the network has plummeted to $126 million, a notable decrease from its year-to-date high of $350 million.
Moreover, the supply of stablecoins within the Hedera network has been on a sharp decline, dropping from $250 million in July to just $74 million today. This contrasts sharply with the overall stablecoin market, which has surged to exceed $300 billion in total market capitalization. The lack of momentum is also evident in the performance of the recently launched Canary Hedera ETF, which has seen no inflows for three consecutive days, with total inflows stagnating at $82 million and the fund”s assets dwindling to $57 million. In contrast, other altcoin ETFs, such as those for Solana and Ripple, continue to attract daily inflows, suggesting that Hedera is struggling to capture interest from American investors.
From a technical perspective, the daily chart for HBAR reveals a pronounced downward trajectory, having fallen from a high of $0.3050 in July to a low of $0.1147. The price has breached the key support level at $0.1250, marking its lowest level since earlier months this year. The movement below this critical threshold signifies a victory for bearish sentiment in the market. Currently, HBAR remains below all moving averages and Supertrend indicators, with the Relative Strength Index and most oscillators indicating continued downward movement. Consequently, the path of least resistance appears to be bearish, with the next significant level to monitor being $0.10, which previously marked a spike in liquidations. A further drop below this price would signal an escalation in bearish momentum.
