The Hedera Hashgraph token has fallen below a crucial support level, indicating a clear victory for bearish traders.
Hedera Hashgraph (HBAR) has plummeted to $0.1750, marking its lowest price since December 1 last year. This represents a staggering decline of over 57% from its peak value this year.
The recent crash in HBAR’s price aligns with a significant decrease in the total assets within its decentralized finance ecosystem. Current data reveals that the total value locked in Hedera’s DeFi ecosystem has dropped to 531 million HBAR tokens, a stark contrast to last year’s peak of 1.33 billion.
Many decentralized applications (dApps) within Hedera’s ecosystem have also experienced asset losses in recent months. For instance, Stader, a leading liquid staking network, has seen an 11% decrease in its assets over the past 30 days, now totaling $81 million. Bonzo Finance has lost 6.8% of its assets, while both HeliSwap and HbarSuite have also failed to retain their asset values.
Additionally, Hedera’s application revenue remains on a downward trend. In March, it generated just $9,700, a sharp decline from $124,000 recorded in December.
The potential approval of an HBAR exchange-traded fund (ETF) by the Securities and Exchange Commission could serve as a catalyst for demand, particularly among U.S. institutional investors.
Technical Analysis of HBAR Price
Technical indicators suggest that further declines in the Hedera Hashgraph price are likely. HBAR has dropped below a critical support level at $0.1817, a threshold it has struggled to breach since February. This breach signals a strong presence of selling pressure.
The cryptocurrency has also formed a death cross pattern, where the 200-day moving average crosses below the 50-day moving average, indicating bearish momentum. Additionally, HBAR has fallen below the 61.3% Fibonacci Retracement level, which typically signals potential pullbacks.
As a result, the anticipated trajectory for HBAR appears to be downward, with the next target set at $0.1200, approximately 31% lower than its current price.
