HBAR Price Forms a Risky Pattern as Hedera Demand Plummets

HBAR price has crashed by 45% from its highest point this year, mirroring the performance of other cryptocurrencies, and a risky pattern points to more downside in the near term. Hedera was trading at $0.1670, bringing its market capitalization to $7.2 billion.

HBAR Price Technical Analysis: Death Cross Forms After Invalidating Elliot Wave

Hedera price formed the highly bullish double-bottom pattern at $0.1255, its lowest level in April and June this year. Its neckline was at $0.2288, its highest level in May.

The bullish view continued as the token started the formation of the impulse Elliot Wave pattern, which is made up of five different phases. Its first phase formed between June and July 7.

The challenge came during the second phase of the pattern as the token crashed below the double-bottom point at $0.1254. In Elliot Wave analysis, the rule is that the second phase should retrace to between the 50% and 61.8% of the first wave.

Now, the token has formed a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. This is one of the most popular bearish reversal patterns in technical analysis.

The token has moved below the bottom of the trading range of the Murrey Math Lines, while the Relative Strength Index (RSI) and the MACD indicators have continued falling.

Therefore, the most likely HBAR price forecast is where it continues falling, with the next key support level to watch will be the key support level at $0.1254, its lowest level in June. This target is about 25% below the current level. A move below this price will point to more downside, potentially to the year-to-date low of $0.1015.

The bearish Hedera price forecast will become invalid if it moves above the resistance at $0.2063, its lowest swing in September.

Hedera Ecosystem Woes are Continuing

HBAR price is facing more challenges, which explains why its crash is accelerating. One of the main challenges is that its goal of disrupting popular layer-1 industry is not working.

For example, Hedera, which was started in 2017, has failed to attract developers to the network. Data compiled by DeFi Llama shows that it only has 23 DeFi protocols, much lower than other networks like Ethereum and Solana.

The total value locked (TVL) in the ecosystem stands at just $176 million, which is 25% lower than where it was a month ago. Some of the biggest players in the network are Stader, SaucerSwap, and Bonzo.

Most notably, Hedera has failed to attract large developers like Aave, Maple Finance, and Uniswap. As a result, despite its $7 billion valuation, the network is not making any money, with its 24-hour chain fees being just $1,300.

Hedera price has also crashed as its market share in other industries wanes. For example, despite its partnerships with leading companies like Google, IBM, and LG, the chain has no market share in the real-world asset (RWA) industry. Data compiled by RWA shows that it RWA value is zero.

HBAR Demand Among Investors is Waning

More data shows that demand for the HBAR token among investors is waning. According to CoinGlass, the volume of HBAR in the last 24 hours was $300 million, down sharply from this month’s high of $1.5 billion.

Most importantly, the futures open interest has tumbled to just $119 million, its lowest level since November last year. It has plunged from the year-to-date high of $525 million.

Falling open interest is a sign of low demand among investors and liquidity. At the same time, the weighted funding rate has continued moving downwards and is now in the red. A negative funding rate is a sign that investors expect the future price to be lower than where it is today.