HBAR price has entered a bear market after falling nearly 50% from its August high, and its weak fundamentals and technicals point to further downside.
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HBAR price is about to form a risky death cross pattern. Technical analysis points out that there is a possibility of further decline in the short term. Hedera’s fundamentals have deteriorated and TVL has declined.
Hedera’s fundamentals are deteriorating
Hedera (HBAR) price has been on a strong downward trend over the past few weeks, mirroring the performance of Bitcoin (BTC) and other top altcoins.
This selloff could accelerate as the best fundamentals deteriorate. For example, despite being well-known in the cryptocurrency industry and having a high market capitalization, Hedera’s role in the major industry is quite small.
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 into the industry was just $168 million, down 30% over the past 30 days.
$168 million is a lot of money, but it’s a small number in the DeFi industry, which has over $280 billion in assets. Hedera has been overtaken by recently launched chains such as Katana, Unichain, and Base.
Hedera does not have a large market share in the gaming and non-fungible token industry. Most importantly, despite launching Stablecoin Studio 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 Council is comprised of blue-chip companies such as Google, IBM, LG, Boeing, Dell, and Nomura. However, it is unclear whether these companies are using the blockchain.
HBAR price technical analysis
The daily chart shows that Hedera’s price has fallen sharply over the past few months. HBAR token has fallen from its high of $0.3052 to the current $0.1600.
The coin recently broke below the major support at $0.2065, invalidating the double bottom pattern. Most importantly, we are approaching the formation of a death cross pattern, which occurs when the 50-day moving average and the 200-day moving average intersect.
HBAR price also fell below the Ichimokugumo index. Therefore, the token is likely to continue falling as sellers target the major support at $0.1015. This is an important level as it is the lowest point of the month and also the final support for the Murray Math Line.
