Hedera’s HBAR token experienced a brief rally before succumbing to significant sell pressure that erased its gains and broke through vital technical support levels. In the hours leading up to 14:00 UTC on September 5, the token rose by 6%, moving from $0.21 to $0.22 within a trading range of $0.013. However, this upward movement was short-lived as sellers aggressively entered the market, resulting in trading volumes that surged to double the 24-hour average, reaching 77.6 million tokens.
The downturn materialized rapidly in the final hour of trading. Between 13:26 and 14:25 UTC, HBAR fell back to $0.22, breaching a crucial support level at 14:16, which triggered a wave of stop-loss orders. This selling frenzy led to a marked increase in trading volume, with approximately 6 million tokens changing hands within just two minutes, indicating a significant institutional retreat.
This price decline overshadowed a key regulatory achievement for Hedera, as Wyoming’s Stable Token Commission designated the network as the exclusive candidate for its state-backed Frontier Stable Token (FRNT). The commission pointed to Hedera’s speed and reliability in issuing a dollar-backed digital currency, representing a noteworthy endorsement of the public ledger by institutional players.
Despite this positive development, market reactions were tepid, and HBAR experienced a 12% decline over the past month, highlighting a downturn in retail demand. On-chain metrics reflected this trend, with social dominance dropping by 55% to 0.74%, suggesting a departure of retail investors. Furthermore, the Smart Money Index, which acts as a gauge for institutional investment flows, fell to 1.108, signaling a retreat from professional traders.
Looking ahead, HBAR now faces a crucial test at the $0.19 support level as selling pressure continues to escalate, raising concerns about the token’s ability to transform regulatory validation into sustained market confidence. The trading data also indicated that support holds at $0.21, while resistance looms at $0.22 where selling activity has intensified. The recent decline emphasizes the ongoing volatility and challenges in the cryptocurrency market landscape.
