The HBAR price continued its downward trend and moved below a crucial support level as Hedera faced major headwinds.
Summary
- HBAR price dropped below a crucial support level as the sell-off accelerated.
- The recently launched HBAR ETF has had no inflows in the last three consecutive days.
- Technicals suggest that the Hedera price has more downside in the coming days.
Hedera (HBAR) token dropped for the sixth consecutive day, reaching its lowest level since Oct. 10, and 63% below its September peak.
The token continued its recent downward trend as Bitcoin (BTC) and altcoins retreated ahead of the upcoming BoJ interest rate decision. Data shows that the market capitalization of all coins dropped below the important support at $3 trillion.
Hedera price also tumbled as its ecosystem growth stalled. Data compiled by DeFi Llama shows that the network has had no new dApp in the past few months, and the total value locked in the network has crashed to $126 million from the year-to-date high of $350 million.
Most importantly, the network’s stablecoin supply has been in a pronounced downward trend over the past few months, declining from a high of $250 million in July to $74 million today. This crash happened even as the market capitalization of all stablecoins in circulation soared to over $300 billion.
Meanwhile, demand for the recently launched Canary Hedera ETF has stalled. The fund has had no inflows for the past three consecutive days, and its cumulative inflows remain at $82 million. The fund now holds just $57 million in assets.
In contrast, other popular altcoin ETFs like Solana (SOL) and Ripple (XRP) have had daily inflows. That is a sign that Hedera is not gaining traction among American investors.
HBAR price technical analysis
Hedera price chart | Source: crypto.newsThe daily timeframe chart indicates that the HBAR price has been in a pronounced downward trend over the past few months, declining from a high of $0.3050 in July to a low of $0.1147 today.
Hedera has fallen below the key support level at $0.1250, its lowest level since April, June, and November this year. Moving below that level indicates that bears have prevailed.
The HBAR price remains below all moving averages and the Supertrend indicators, while the Relative Strength Index and most oscillators continue to move downward.
Therefore, the path of least resistance for the token is bearish, with the next key level to watch being at $0.10, its lowest level on Oct. 10 when liquidations jumped. A drop below that price will indicate further downside as bears prevail.
Source: https://crypto.news/hbar-price-could-crash-hedera-faces-major-headwinds/
