HBAR Price Falls Amidst Liquidity Crunch
Hedera Network's native token, HBAR, is experiencing renewed bearish pressure, with a 15% drop over the past week. The price is nearing its year-to-date low, fueled by a significant decline in network liquidity.
Hedera Stablecoin Supply Plunges
Data from DefiLlama reveals that stablecoin supply on the Hedera network has fallen to its lowest point in 90 days, reaching $41 million. This represents an 80% decrease from last month's peak of $216 million. This drop suggests reduced on-chain activity and lower market participation.
Hedera Stablecoin Supply. Source: DefiLlama
Stablecoins serve as an indicator of market activity and capital flow. The decrease indicates fewer users are transacting, investing, or seeking yield on the Hedera network, thereby lowering demand for HBAR and increasing downward pressure on its price.
Technical Analysis: Ichimoku Cloud Signals Bearish Trend
HBAR's price has fallen below its Ichimoku Cloud, a momentum indicator. The Leading Spans A and B are acting as resistance at $0.15 and $0.17, respectively. This suggests continued bearish pressure unless buying momentum increases significantly.
HBAR Ichimoku Cloud. Source: TradingView
Trading below the Ichimoku Cloud indicates a weakening demand and increased selling pressure. The $0.15 and $0.17 levels represent potential resistance, suggesting a continued decline if the price stays below these levels.
HBAR Nears YTD Low
HBAR is currently trading near $0.13, its year-to-date low. While this acts as a potential support level, further price declines are possible if demand remains weak. Conversely, a return of buyer confidence, pushing the price above $0.15, could signal a potential reversal.
HBAR Price Analysis. Source: TradingView
A breakout above $0.15 could open the way for a rally towards $0.17.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change. Conduct your own thorough research before making any investment decisions.