Hedera's stablecoin capitalization dropped by 50%, posing a serious threat to HBAR token. Explore the key reasons behind this decline and the technical outlook for Hedera Hashgraph's flagship token.
The Hedera Hashgraph network has experienced an alarming liquidity hemorrhage in recent days, with a 53% drop in its stablecoin market capitalization in just one week. If this bearish trend continues, it could have devastating consequences for HBAR, the network’s native cryptocurrency.
On-chain data reveals a clear decline in activity on the Hedera network, with a significant decrease in transaction volume and stablecoin presence. This user disengagement is reflected in a negative sentiment among HBAR holders, as evidenced by a sentiment index below 0.
Currently, the HBAR price is holding just above the technical support at $0.212. If sellers manage to push the price below this level, a new wave of depreciation could follow, potentially reaching a low of $0.192.
Only a demand resurgence and bullish momentum could enable HBAR to escape this downward trend and target a return to $0.232. However, the future of Hedera’s flagship token currently looks quite bleak.
A demand resurgence and bullish momentum could help HBAR escape this bearish trend and aim for a return to $0.232. Here’s a buying guide for Zoomex:
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