Hedera Token Price Continues Downward Trend Amidst Ecosystem Challenges
The Hedera token (HBAR) has experienced a significant decline, falling for the sixth consecutive day to reach its lowest level since October 10. This downward trend has resulted in a 63% decrease from its September peak, sparking concerns among investors. The token’s price has been heavily influenced by the overall cryptocurrency market, which has seen a decline in recent days ahead of the Bank of Japan’s upcoming interest rate decision.
The market capitalization of all coins has fallen below the key support level of $3 trillion, with Bitcoin (BTC) and altcoins leading the decline. Hedera’s ecosystem growth has also stalled, with data from DeFi Llama showing no new dApp launches in recent months. The total value locked on the network has decreased to $126 million from its year-to-date high of $350 million, further contributing to the token’s decline.
Stablecoin Supply and ETF Demand
The stablecoin supply on the Hedera network has seen a significant downward trend over the past few months, falling from a peak of $250 million in July to $74 million today. This decline has occurred despite the overall market cap of stablecoins in circulation rising to over $300 billion. Meanwhile, the recently launched Canary Hedera ETF has not seen any inflows for the last three consecutive days, with cumulative inflows remaining at $82 million and assets totaling $57 million.
In contrast, other popular altcoin ETFs such as Solana (SOL) and Ripple (XRP) have recorded daily inflows, indicating a lack of interest in Hedera among American investors. This lack of demand, combined with the ecosystem’s challenges, has contributed to the token’s downward trend.
Technical Analysis of HBAR Price
The daily time frame chart shows that HBAR price has been in a significant downtrend over the past few months, falling from a high of $0.3050 in July to a low of $0.1147 today. The token has fallen below the key support level of $0.1250, its lowest level since April, June, and November this year. A break below this level indicates that the bears have prevailed, with the next key level to watch being $0.10, the lowest level on October 10 when liquidations surged.
Hedera price chart | Source: crypto.news
HBAR price remains below all moving averages and supertrend indicators, while the Relative Strength Index and most oscillators continue to move lower. This technical analysis suggests that the path of least resistance for the token is bearish, with further downside expected in the coming days.
For more information on the Hedera token and its price movements, visit https://crypto.news/hbar-price-could-crash-hedera-faces-major-headwinds/
