HBAR Nears Yearly Low as Stablecoin Liquidity on Hedera Dries Up

Hedera Network’s native token, HBAR, is facing renewed bearish pressure after suffering a sharp 15% decline over the past seven days. 

Now teetering on the edge of its year-to-date low, the HBAR token price may extend its downward trajectory as network-wide liquidity dries up.

Hedera Stablecoin Supply Hits 90-Day Low

According to DefiLlama, stablecoin supply on Hedera has slumped to its lowest level in 90 days. At press time, this is at $41 million, down more than 80% from last month’s peak of $216 million.

Hedera Stablecoin Supply. Source: DefiLlama

This decline suggests weakening demand for on-chain liquidity and signals a broader slowdown in user activity across the network.

Stablecoins are used as a proxy for market participation and capital inflows. Therefore, the drop in their supply on Hedera indicates that fewer users are transacting, deploying capital, or seeking yield on the network. 

This lowers the demand for HBAR and puts more downward pressure on its already-struggling price. HBAR could see sustained selloffs in the short term without a resurgence in stablecoin momentum on the network. 

Furthermore, HBAR’s multi-month decline has pushed its price below its Ichimoku Cloud. At press time, this momentum indicator’s Leading Spans A and B form resistance above the token’s price at $0.15 and $0.17, respectively. 

HBAR Ichimoku Cloud. Source: TradingView

The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades below this cloud, it reflects the bearish pressure in the market. It means demand stalls while selling pressure spikes.

For HBAR, the $0.15 and $0.17 price marks represent dynamic resistance zones, reinforcing the likelihood of continued decline if the price remains below these levels.

HBAR Struggles Near YTD Lows

HBAR currently hovers just above the $0.13 level, according to readings from the HBAR/USD daily chart. This price zone marks a crucial support floor and represents the altcoin’s year-to-date low. If demand weakens, HBAR could revisit this critical level and potentially break lower.

However, the bearish outlook may be short-lived if buyers return to the market. A resurgence in accumulation could invalidate the current downtrend, with bulls eyeing a move above resistance at the $0.15 level. 

HBAR Price Analysis. Source: TradingView

A successful breakout at this level may open the door for the HBAR token price to rally toward $0.17.