Key Insights
- HBAR price has declined nearly 50% since August, entering a sustained bear market alongside broader crypto weakness.
- Hedera’s DeFi total value locked dropped 30% in 30 days, signaling weak adoption among developers and investors.
- Technical indicators, including the imminent death cross, suggest continued downside toward the $0.1015 support level.
Hedera’s native token, HBAR, has slipped into a bear market following a steep 50% decline from its August highs. The ongoing sell-off mirrors the broader weakness seen across major cryptocurrencies, including Bitcoin and other top altcoins. Market sentiment remains fragile as traders react to weakening fundamentals and bearish technical indicators that suggest further downside momentum.
The deteriorating fundamentals within Hedera’s ecosystem have weighed heavily on investor confidence. The network’s total value locked (TVL) in decentralized finance has fallen to around $168 million, marking a sharp 30% drop in the past month. This decline underscores the limited traction Hedera has gained among leading decentralized applications, especially when compared to major DeFi platforms such as Uniswap, PancakeSwap, and Aave.
Lagging in DeFi and NFT Ecosystems
Despite its established governance council featuring major corporations like Google, IBM, and Boeing, Hedera has struggled to capture a meaningful share of the DeFi, gaming, and NFT markets. While the launch of its Stablecoin Studio in 2024 was expected to boost ecosystem adoption, its total stablecoin supply stands at only $89 million. This is modest when measured against a global stablecoin market exceeding $300 billion.
From a technical perspective, HBAR’s chart paints a concerning picture. The token has dropped from a recent peak of $0.3052 to around $0.1600, breaching the crucial support level at $0.2065 and invalidating the earlier double-bottom formation. The daily moving averages indicate the possibility of a “death cross,” a bearish formation that occurs when the 50-day moving average crosses below the 200-day average. Additionally, HBAR now trades below the Ichimoku Cloud indicator, signaling persistent selling pressure.
Further Declines Remain Possible
With momentum indicators showing limited signs of recovery, analysts expect the HBAR price to continue its downward path. Sellers are likely to target the next significant support level near $0.1015, a key threshold identified by the Murrey Math Lines indicator. Unless fundamentals improve or broader crypto sentiment strengthens, Hedera’s bearish cycle may extend further in the near term.
