The token faces $HBAR
, a native token of the #Hedera network, is facing renewed downward pressure after experiencing a sharp decline of 15% over the past seven days.
The price of the token $HBAR is now teetering on the edge of its lowest level since the beginning of the year and may continue its downward path with liquidity depletion at the network level.
The supply of the stablecoin Hedera has reached a 90-day low.
According to D,efiL,,lama, the supply of stablecoins on Hedera has fallen to a 90-day low. At the time of publication, this supply stood at $41 million, a decrease of over 80% from last month's peak of $216 million.
The supply of the stablecoin Hedera.
This decline indicates weak demand for liquidity on the network and signals a broader slowdown in user activity across the network.
Stablecoins are used as an indicator of market participation and capital flows. Therefore, the decrease in their supply on Hedera indicates a decline in the number of users conducting transactions, investing their capital, or seeking returns on the network.
This leads to decreased demand for the $HBAR token, increasing the downward pressure on its already struggling price. HBAR may witness continued intense sell-offs in the short term without a rebound in the momentum of stablecoins on the network.
Moreover, the decline of the #HBAR token for several months has pushed its price below the Ichimoku Cloud level. As of the time of publication, the two leading periods A and B of this momentum indicator form resistance above the token price at $0.15 and $0.17 respectively.
HBAR Ichimoku Cloud.
The Ichimoku Cloud tracks the momentum of asset market trends and identifies potential support/resistance levels. When the asset trades below this cloud, it reflects downward pressure in the market. This means that demand is declining while selling pressure is increasing.
For HBAR, the price marks of $0.15 and $0.17 represent two dynamic resistance areas, enhancing the likelihood of continued decline if the price remains below these levels.
HBAR is struggling near its lowest levels since the beginning of the year.
HBAR is currently hovering just above the $0.13 level, according to the daily chart readings for the HBAR/USD pair. This price area represents a critical support floor and marks the lowest level for the altcoin since the beginning of the year. If demand weakens, HBAR may return to this critical level and possibly decline.
However, the bearish outlook may be short-lived if buyers return to the market. A recovery in accumulation may negate the current downward trend, with bulls targeting a move above the resistance level at $0.15.
HBAR Price Analysis.
A successful breakout of this level may open the way for the HBAR token price to rise towards $0.17.