The price of HBAR continues to struggle in a bearish market, having dropped 63% from its peak in July and a staggering 72% from highs earlier in 2024. Currently, it hovers near its lowest point since November of the previous year, facing increasing challenges.
One of the significant factors contributing to this downturn is the dwindling demand for the recently launched HBAR ETF. The Canary HBAR ETF, which debuted to much anticipation, has seen its inflows vanish entirely since December 10. This lack of investor interest is underscored by the fund’s daily trading volume, which has plummeted to zero. Although cumulative inflows were recorded at $82 million, net assets remain at a mere $52.7 million, trailing far behind other prominent crypto ETFs like those for Bitcoin and Ethereum.
Despite attracting heavyweight partners to its governance council, including the well-known energy company Repsol, Hedera struggles to gain traction among developers. Data from third-party sources indicate that many organizations prefer to build on the Ethereum network instead. This trend is reflected in Hedera’s total value locked (TVL), which is reported to be under $200 million, significantly lower than other new networks such as Plasma, Sonic, and Aster.
Additionally, Hedera’s market presence in the stablecoin sector remains minimal, with a total supply of less than $100 million. There are ongoing questions about the adoption of its Stablecoin Studio, a product designed to assist businesses in launching their own tokens.
Further compounding these issues, Hedera’s futures open interest has witnessed a steep decline, dropping from $449 million last October to just $100 million recently. This trend signals a growing lack of demand and indicates that many traders anticipate further price decreases.
In the spot market, HBAR’s demand has also dipped significantly, falling below $100 million, especially stark when compared to other tokens like Midnight (NIGHT), which recorded over $6 billion in trading volume on a recent Monday.
Technically, the price chart for HBAR reveals a striking decline over the past few months. The coin has plummeted from a high of $0.3051 on July 27 to its current price of $0.1100. It has broken below a critical support level at $0.1248, which marked its lowest points in April and June. The HBAR price is currently well below both the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator.
Looking ahead, the most probable scenario for HBAR is a continuation of the bearish trend, with forecasts suggesting a possible target of $0.0800, particularly if it drops below the crucial support level at $0.100.
