HBAR price has crashed into a bear market after falling nearly 50% from its highest point in August, and its weak fundamentals and technicals point to more downside.
Summary
- HBAR price is about to form the risky death cross pattern.
- Its technicals point to more downside in the near term.
- Hedera’s fundamentals have deteriorated, with its TVL falling.
Hedera’s fundamentals are deteriorating
The Hedera (HBAR) price has been in a strong downtrend in the past few weeks, mirroring the performance of Bitcoin (BTC) and other top altcoins.
This crash could accelerate as its top fundamentals deteriorate. For example, despite its big name in the crypto industry and high market cap, Hedera’s role in key industries is fairly small.
For example, Hedera has struggled to attract the top blue-chip developers like Uniswap, PancakeSwap, and Aave in its decentralized finance ecosystem. As a result, its total value locked in the industry is just $168 million, down by 30% in the last 30 days.
While $168 million is a lot of money, it is a small figure 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 industry. Most importantly, despite launching Stablecoin Studio in 2024, its total supply stands at just $89 million. This is a small amount in an industry with over $300 billion in assets.
Most importantly, Hedera’s governance council is made up of blue-chip companies like Google, IBM, LG, Boeing, Dell, and Nomura. However, it is unclear whether these companies are using its blockchain.
HBAR price technical analysis
The daily chart shows that the Hedera price has plunged in the past few months. The HBAR token has dropped 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 nearing 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 will likely continue falling as sellers target the key support at $0.1015. This is an important level, as it was the lowest point this month and also the ultimate support of the Murrey Math Lines.
