HBAR price has collapsed in a bear market after falling nearly 50% from its August high, and its weak fundamentals and technicals point to further downside.
Summary
- HBAR price is about to form the risky death crossover pattern.
- Its technical characteristics suggest other short-term disadvantages.
- Hedera’s fundamentals have deteriorated, with its TVL falling.
Hedera’s fundamentals are deteriorating
Hedera (HBAR) price has seen a strong downward trend over the past few weeks, mirroring the performance of Bitcoin (BTC) and other leading altcoins.
This crash could accelerate as its key fundamentals deteriorate. For example, despite its big name in the crypto industry and high market capitalization, Hedera’s role in key sectors is quite limited.
For example, Hedera has struggled to attract top blue-chip developers like Uniswap, PancakeSwap, and Aave to its decentralized finance ecosystem. As a result, its total value locked in the industry is just $168 million, down 30% over the past 30 days.
Although $168 million is a lot of money, it is a small number in the DeFi industry, which has over $280 billion in assets. Hedera has been overtaken by recently launched chains like Katana, Unichain and Base.
Hedera does not have a significant market share in the gaming and non-fungible token sector. More importantly, despite Stablecoin Studio launching in 2024, its total supply is only $89 million. That’s a small amount in an industry with more than $300 billion in assets.
Most importantly, Hedera’s governance board is comprised of blue-chip companies such as Google, IBM, LG, Boeing, Dell, and Nomura. However, it is unclear whether these companies use its blockchain.
Technical analysis of HBAR price
The daily chart shows that the Hedera price has plunged over the past few months. The HBAR token fell 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. More importantly, it is about to form a death crossover pattern, which occurs when the 50 and 200 day moving averages cross.
HBAR price also moved below the Ichimoku Cloud indicator. Therefore, the token will likely continue to decline as sellers target key support at $0.1015. This is an important level, as it is the lowest point this month and also the ultimate support for the Murrey Math Lines.
