The Hedera Hashgraph token has plummetted below a crucial support level, indicating a clear victory for the bears.
Hedera Hashgraph (HBAR) fell to a low of $0.1750, marking its lowest point since December 1 of the previous year. This represents a steep decline of over 57% from its peak this year.
The current drop in HBAR’s price has corresponded with a fall in the total assets within its decentralized finance ecosystem. Reports indicate that the total value locked in its DeFi ecosystem has decreased to 531 million HBAR tokens, significantly down from last year’s peak of 1.33 billion.
Several decentralized applications (dApps) within this ecosystem have experienced asset declines over recent months. Stader, a prominent liquid staking platform, has seen an 11% reduction in its assets over the past 30 days, now standing at $81 million. Meanwhile, Bonzo Finance has lost 6.8% of its assets, with HeliSwap and HbarSuite also reporting losses.
Furthermore, Hedera’s application revenue has continued to decline in recent months, dropping to just $9,700 in March from $124,000 in December.
The only possible catalyst for a price increase in Hedera may be the potential approval of the HBAR ETF by the Securities and Exchange Commission. Such a move could spur greater demand from institutional investors in the United States.
Technical Assessment of HBAR Price
Technical indicators suggest further declines for the Hedera Hashgraph price. The token has slipped below the vital support level of $0.1817, which it had previously managed to hold since February. Breaching this level signifies a decisive win for the bears.
Additionally, Hedera has illustrated a death cross pattern, indicating a crossover between the 200-day and 50-day moving averages. It has also dipped below the 61.3% Fibonacci Retracement level, often a point of significant pullback.
As a result, the most likely trajectory for HBAR appears to be downward, with the next target set at $0.1200, the 78.6% retracement point, which is approximately 31% lower than the current level.