The Hedera Hashgraph token crashed below a key support level, signaling that bears prevailed.
Hedera Hashgraph (HBAR) dropped to a low of $0.1750, its lowest level since December 1 last year. It has plunged by over 57% from its highest level this year.
The ongoing HBAR price crash has coincided with a decline of total assets in its decentralized finance ecosystem. Data shows that the total value locked in its DeFi ecosystem has crashed to 531 million HBAR tokens, down from last year’s high of 1.33 billion.
Most dApps on its ecosystem have lost assets in the past few months. Stader, a top liquid staking network, has shed 11% of its assets in the last 30 days to $81 million. Bonzo Finance has shed 6.8% of its assets, while HeliSwap and HbarSuite have also lost assets.
Hedera’s app revenue has also continued falling in the past few months. In March, it was just $9,700, down from $124,000 in December.
The only potential catalyst for Hedera price is the potential HBAR ETF approval by the Securities and Exchange Commission. Such an approval would lead to more demand from US institutional investors.
HBAR price technical analysis
Technical indicators point to more Hedera Hashgraph price crashes. It has moved below the key support at $0.1817, a key support level that has failed to move below several times since February this year. Moving below that level is a sign that bears have prevailed.
Hedera has also formed a death cross pattern, as the 200-day and 50-day moving averages have flipped each other. It has also moved below the 61.3% Fibonacci Retracement level, where most pullbacks happen.
Therefore, the path of least resistance for HBAR is downward. The next target is $0.1200, the 78.6% retracement point, which is about 31% below the current level.
Read the full article here