HBAR price has crashed into a bear market after falling nearly 50% from its peak in August, and its weak fundamentals and technicals point to further downsides.
Summary
- HBAR price is about to form the risky death cross pattern.
- Its technical data points to more downside in the short term.
- Hedera’s fundamentals have deteriorated and its TVL has fallen.
Hedera’s fundamentals are deteriorating
The Hedera (HBAR) price has been in a strong downward trend in recent weeks, mirroring the performance of Bitcoin (btc) and other major altcoins.
This decline could accelerate as its main fundamentals deteriorate. For example, despite its big name in the crypto industry and high market capitalization, Hedera’s role in key industries is quite small.
For example, Hedera has struggled to attract top blue-chip developers like Uniswap, PancakeSwap, and Aave into its decentralized finance ecosystem. As a result, your total value locked in the industry is only $168 million, down 30% in the last 30 days.
While $168 million is a lot of money, it is a small number in the DeFi industry, which has more than $280 billion in assets. Hedera has been overtaken by recently launched chains such as Katana, Unichain and Base.
Hedera does not have a significant market share in the gaming and non-fungible token industry. Most importantly, despite the launch of Stablecoin Studio in 2024, its total supply amounts to only $89 million. This is a small amount in an industry with more than $300 billion in assets.
Most importantly, Hedera’s governing board is made up of blue-chip companies such as Google, IBM, LG, Boeing, Dell and Nomura. However, it is unclear whether these companies are using their blockchain.
HBAR Price Technical Analysis
The daily chart shows that Hedera price has plummeted in recent months. The HBAR token has fallen from a high of $0.3052 to the current $0.1600.
The coin recently invalidated the double bottom pattern by falling below the key support at $0.2065. Most importantly, it is approaching the formation of a death cross pattern, which occurs when the 50-day and 200-day moving averages cross.
HBAR price has also moved below the Ichimoku Cloud indicator. Therefore, the token is likely to continue falling as sellers target the key support at $0.1015. This is an important level as it was the lowest point of this month and also the final support of Murrey Math Lines.
