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Hedera Hashgraph’s native token, $HBAR, has slipped 7% over the past week as investor sentiment weakens and broader market demand for the altcoin fades.
On-chain data reveals a sharp decline in liquidity across the Hedera network and growing pessimism among $HBAR holders—factors that could push the token further to the downside in the short term.
Liquidity Exodus Hits Hedera
According to DefiLlama, Hedera’s stablecoin market cap has plunged 53% in the past week, dropping to $70 million. The sharp decline signals a significant liquidity exit from the network within just seven days.
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A fall in stablecoin market cap points to reduced on-chain activity, since stablecoins are essential for trading, payments, and other decentralized finance operations. Therefore, lower stablecoin presence suggests fewer participants are engaging with the network, a trend that translates into weaker transaction volumes.
For $HBAR, this liquidity decline raises the risk of further downward pressure on price as demand across the Hedera ecosystem continues to weaken.
Further, $HBAR’s weighted sentiment remains below zero, confirming the growing bearish bias toward the altcoin. As of this writing, the metric stands at -1.08.
The weighted sentiment metric tracks the ratio of positive to negative commentary around an asset by combining the volume of social discussions with their tone. A reading above zero reflects optimism and positive chatter, while a value below zero signals that negative emotions dominate the conversation.
$HBAR’s current weighted sentiment suggests that its traders and community members are largely skeptical about the token’s near-term prospects. This can continue to limit their buying interest, worsening the downward momentum in $HBAR’s price.
$0.212 Support Decides $HBAR’s Next Move
As of this writing, $HBAR is trading at $0.225, hovering above the $0.212 support floor. If the bears pull the token’s price toward this level and the bulls fail to defend it, further declines, possibly towards $0.192, could result.
$HBAR Price Analysis">
However, a rebound in new demand for the altcoin will invalidate this bearish outlook. If buy-side pressure regains momentum, $HBAR could reverse its downtrend and climb to $0.232.
The post $HBAR’s Week Ahead Looks Bleak as Hedera Stablecoin Market Cap Crashes 50% appeared first on BeInCrypto.
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