The HBAR price continued its freefall this week, moving to its lowest level since October 10 this year. Hedera token was trading at $0.1145, down by 65% from its highest point this year.
HBAR Price Crashes as Risks Rise
The ongoing HBAR price crash has coincided with the performance of the broader crypto industry. Bitcoin has dropped from $126,200 in October to $87,000 today. Also, the market cap of all coins has fallen from the year-to-date high of $1.2 trillion to the current $2.9 trillion.
However, Hedera has also faced its own headwinds that have affected its performance. The most important one is that the recently launched Canary HBAR ETF has largely backfired.
This ETF has had no inflows in the last five consecutive days. Its cumulative inflows since its start in October stand at just $82 million. In contrast, XRP ETFs have now crossed the important milestone of $1 billion in terms of inflows.
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The HBAR ETF performance mirrors that of other smaller coins like Litecoin and Dogecoin.
Meanwhile, Hedera is having an ecosystem problem, leading to concerns that it has become a ghost chain. A ghost chain is a blockchain network that has no major activity going on.
One reason why Hedera is seen as one is that it has not attracted any DeFi protocol in its platform in the past few months. It still has fewer than 5 dApps and a total value locked (TVL) of $122 million. This TVL figure is much smaller than other recently launched networks like Monad and Plasma.
Hedera has a limited role in the stablecoin industry, where it has $92 million in assets. Also, despite its speed and partnerships with global companies, it has no market share in the booming RWA industry.
Hedera Price Technical Analysis
The daily timeframe chart shows that the HBAR price has crashed in the past few months. It has plummeted from a high of $0.3050 in July to the current $0.1140.
The token has recently moved below the key support level at $0.1248, its lowest level in April and June this year. It remains below all moving averages and the descending trendline.
Therefore, the path of the least resistance for Hedera price is bearish, with the next key target being the psychological point at $0.10. A drop below that level will point to more losses, potentially to the psychological point at $0.085.
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