Hedera’s decentralized network has recently faced significant challenges, with its native asset, HBAR, plummeting to approximately $0.12 over the weekend. This drop followed a critical decline below the $0.1235 support level on December 14, marking the end of an extended period of price consolidation and triggering a notable wave of selling. This shift has led to a decidedly bearish market outlook for HBAR.
Several broader market conditions have contributed to the downturn. Despite the central bank’s decision to cut rates last Wednesday, HBAR experienced an 8% drop, as investors interpreted the announcement as a sign of caution. Officials indicated a likelihood of slower rate cuts extending into 2026. Additionally, Bitcoin’s fall below $90,000 added to the prevailing sense of caution among investors in the cryptocurrency space.
The environment has also been affected by increasing real yields, highlighted by a 12-basis point rise in the U.S. 10-year Treasury yield, which has further diminished the appetite for speculative assets. Consequently, altcoins like HBAR are feeling the pressure, as investor sentiment shifts.
Interestingly, on-chain data reveals contrasting behavior among larger market participants, known as whales. Despite the price decline of HBAR, these whales have demonstrated aggressive buying, accumulating approximately 3.42 billion HBAR within just two days. This accumulation suggests a level of confidence from large holders even as the market trends downward.
In conjunction with this, cumulative trading volume for HBAR has surged, reaching $327 billion according to data from DefilLama, shared by analyst Marc Shawn Brown. This sustained trading activity indicates ongoing interest in the Hedera network, even amidst short-term price pressures.
From a technical analysis perspective, the outlook for HBAR remains bleak. Analyst More Crypto Online characterized HBAR as a “falling knife,” pointing to a continuing downward price trajectory, with potential tests of support near $0.1049. The breakdown below the previously tested $0.1235 support level further invalidated prior price ranges, contributing to the negative sentiment in the market.
Recent trading volumes have spiked, with 166 million HBAR traded, representing a 175% increase above average. This rise in volume signals aggressive selling rather than a mere decline in price.
Momentum indicators also favor a cautious outlook. The Relative Strength Index (RSI) for HBAR is currently at 23.41, indicating an extreme oversold condition. However, there are no signs of a bullish reversal at this stage, indicating that sellers maintain control in the short term. The next crucial level to watch for Hedera is $0.1176, representing the low from June 2025. A fall below this level could increase the risk of further price declines, whereas any recovery would necessitate a move back above the $0.1235 threshold to alleviate the mounting pressure facing HBAR.
