- HBAR has dropped 26% from its yearly peak, moving below the 50-day EMA and forming a bearish descending triangle pattern in recent weeks.
- Stablecoin supply on Hedera has surged 50% in seven days, boosting its role as a low-cost, fast network for payments and transactions.
- Hopes of SEC approval for a Grayscale spot HBAR ETF and growing tokenization partnerships could offset bearish technical signals in the near term.
Hedera’s HBAR token extended its losses in August, trading at $0.2243 on August 31, marking a 26% drop from its yearly peak. The coin is now at its lowest point since mid-July, reflecting increased selling pressure across the market.
On the daily chart, HBAR has declined from $0.3020 earlier this month to $0.2232, falling below the 50-day Exponential Moving Average. This indicates that sellers currently dominate the market. Additionally, a descending triangle has formed, with horizontal support near $0.2257 and a downward-sloping trendline.
Indicators confirm weakening sentiment
Momentum gauges add to the bearish picture. The Relative Strength Index has moved below the neutral level of 50, and the MACD indicator has slipped under the zero line. These signals suggest downside continuation, with the next potential target near the psychological level of $0.10, which would represent a 55% drop from current prices. A move above the triangle resistance, however, would challenge this bearish setup and potentially push the coin back toward $0.30.
Despite the negative technical structure, Hedera’s fundamentals remain solid. There is growing speculation that the US Securities and Exchange Commission may approve a Grayscale spot HBAR ETF. Market observers note that such approval could drive institutional inflows and improve investor sentiment.
Stablecoin adoption strengthens the network
Hedera has also recorded significant growth in stablecoin adoption. According to DeFi Llama, the stablecoin supply on the network has increased by 50 percent in the past week, reaching $127 million. Hedera positions itself as a cost-effective and efficient platform for stablecoin transactions, with flat transaction fees of about $0.001 regardless of transfer size.
In addition, Hedera continues to expand its presence in asset tokenization. The network recently partnered with Swarm to support tokenized stocks on its platform. This development highlights Hedera’s growing role in real-world asset tokenization, an area attracting rising institutional interest.
