HBAR price at risk as key Hedera Hashgraph metric crashes 82%
Hedera Hashgraph token crashed and formed a death cross pattern, signaling more downside in the near term.
Hedera Hashgraph (HBAR) price tumbled to a low of $0.1450, its lowest level since April 9, and 35% below its highest level in May.
The drop came despite a major ecosystem development. In a recent statement, AUDC, an Australian company, announced the launch of AUDD, the first Australian dollar stablecoin on the Hedera network. It also marked the first commercial implementation of Hedera Studio.
AUDD offers instant settlement and ultra-low costs of around $0.001 per transaction. It may also pave the way for additional stablecoin launches on Hedera’s blockchain in the coming months.
The risk, however, lies in the sharp drop in stablecoin supply on Hedera. According to DeFi Llama’s data, Hedera currently holds just $40 million worth of stablecoins, down 82% from last month’s peak of $216 million.
Hedera’s stablecoin footprint now trails that of newer chains. For instance, Sonic, relaunched in January, has over $380 million in stablecoins. Similarly, Unichain holds over $383 million.
Additional data from Coinglass shows that Hedera’s futures open interest has declined to $217 million, down from a year-to-date high of $308 million.
HBAR price technical analysis
The daily chart reveals that HBAR has been in a sustained downtrend in recent months. A death cross pattern formed on May 30, as the 50-day and 200-day Exponential Moving Averages crossed.
Hedera token has also plunged below the upper side of the descending channel. Also, the Relative Strength Index and the MACD indicators have continued falling, a sign that the bearish trend is gaining momentum.
As a result, Hedera is likely to continue sliding, with sellers eyeing the lower side of the channel at $0.1200. A move above the resistance level at $0.1855 would invalidate the bearish outlook.
You May Also Like
Will US Banks Soon Accept Stablecoin Interest?
ArtGis Finance Partners with MetaXR to Expand its DeFi Offerings in the Metaverse
