The Hedera Hashgraph token, known as HBAR, is experiencing significant market volatility, recently crashing to a low of $0.1450. This marks the lowest price level since April 9 and represents a staggering 35% drop from its peak in May. The downturn is alarming for investors as it coincides with the emergence of a death cross pattern, indicating potential further declines in the near term.
Despite the notable price drop, there was some excitement brought on by the recent launch of the AUDD, the first Australian dollar stablecoin on the Hedera network. Developed by AUDC, this stablecoin is designed to facilitate instant settlements at ultra-low transaction costs of approximately $0.001. This introduction could foster a more robust ecosystem by paving the way for additional stablecoin launches across Hedera’s blockchain.
However, a significant concern is the dramatic 82% drop in the supply of stablecoins on Hedera, according to data from DeFi Llama. Currently, the total value of stablecoins on the platform stands at just $40 million, down from a previous high of $216 million only a month prior. This reduction in stablecoin supply places Hedera behind newer chains, including Sonic and Unichain, which boast substantial stablecoin volumes of over $380 million.
Further analysis reveals that Hedera’s overall market momentum is faltering. Data from Coinglass indicates a decline in futures open interest from a year-to-date high of $308 million to $217 million. This bearish trend is underscored by key technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), both of which signal that the downward trend is gaining momentum.
From a technical perspective, HBAR has maintained a sustained bearish trend. Following the death cross that occurred on May 30, the price has fallen below the upper boundary of a descending channel. Analysts predict further movement downward, with key resistance levels sitting at $0.1855 and a potential target of $0.1200 if the current trend continues. This cataclysmic shift in price levels raises concerns for investors, urging them to remain vigilant in this uncertain market landscape.
