HBAR price has crashed in the last five consecutive days after it formed the highly bearish double-top pattern. Hedera tanked to a low of $0.24, down by over 22% from its highest point in June. So, will this blue-chip cryptocurrency rebound?
HBAR Price Crashed After Forming a Double-Top
The daily timeframe data shows that the Hedera Hashgraph price formed a giant double-bottom pattern at $0.1295, its lowest level in April and June. This is a popular bullish reversal pattern in technical analysis, which explains why it exploded higher to $0.3050.
Recently, however, HBAR price has formed a double-top pattern at $0.2985 and a neckline at $0.2400. This neckline coincides with the double-top’s neckline at $0.2282. A double-top often leads to a bearish breakdown.
Therefore, a break below the support level at $0.2282 will invalidate the break-and-retest pattern and validate the double top. If this happens, the next point to watch will be the 200-day moving average at $0.1930, which is about 20% below the current level.
The bullish Hedera Hashgraph forecast will be confirmed when it ultimately jumps above the double-top point at $0.2985.
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Hedera’s Stablecoin Network is Growing, But Ecosystem Challenges Remain
Hedera Hashgraph has become one of the biggest crypto projects with its market capitalization surging to over $10 billion. This surge is mostly because of its core fundamentals such as faster speeds and lower costs than Ethereum and other chains.
It is also due to the members of its governance council, which includes prominent names such as Google, Ubisoft, IBM, and ServiceNow.
The challenge, however, unlike chains like Ethereum and Solana, Hedera does not have a strong ecosystem. For example, data shows that the supply of USDC on its platform has jumped to $208 million, a few points below the all-time high of $210 million.
While the stablecoin growth is good, the reality is that its market share in the sector is negligible. That’s because USDC has a market cap of over $62 billion, while the combined market cap of all coins has jumped to over $260 billion.
The same is happening in the decentralized finance (DeFi) industry, where Hedera has a total value locked (TVL) of $247 million. Again, this is a tiny amount for an industry valued at over $289 billion.
Worse, of the $247 million, $112 million is in Stader, a liquid staking platform. Only 8 apps in its ecosystem have a TVL of over $1 million.
Hedera does not have a significant market share in other areas of the crypto industry, like non-fungible tokens (NFTs) and gaming.
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