HBAR Token Price Nears Critical Support Level Amid Selloff

·

The HBAR token price is approaching a pivotal support zone as bearish momentum intensifies across the Hedera network. With declining on-chain activity and shrinking stablecoin liquidity, market sentiment has turned increasingly cautious. As HBAR trades just above its year-to-date low, investors are watching closely to see whether this critical level holds or gives way to further downside.

Declining Stablecoin Supply Signals Weakening Network Demand

One of the most telling indicators of reduced activity on the Hedera network is the sharp drop in stablecoin supply. According to DeFiLlama, stablecoin liquidity on Hedera has plummeted to just $41 million — the lowest level in 90 days. This represents an alarming decline of over 80% from its recent peak of $216 million last month.

Stablecoins are a vital barometer for blockchain adoption and capital inflow. A shrinking stablecoin supply typically reflects diminished user engagement, fewer transactions, and lower demand for decentralized applications (dApps) built on the network. In Hedera’s case, this downturn suggests that fewer participants are using the ecosystem for trading, lending, or yield-generating activities — all of which directly impact the utility and demand for HBAR.

👉 Discover how blockchain networks respond to liquidity shifts and what it means for token performance.

Without a meaningful rebound in stablecoin inflows, HBAR may continue facing sustained selling pressure. Historically, prolonged drops in on-chain liquidity have preceded extended bear markets for associated tokens, making this trend particularly concerning.

Technical Indicators Confirm Bearish Momentum

From a technical analysis perspective, HBAR’s price action has confirmed a bearish outlook by trading below the Ichimoku Cloud — a comprehensive indicator used to assess momentum, support, and resistance levels. The Ichimoku Cloud, formed by Leading Spans A and B, currently acts as overhead resistance between $0.15 and $0.17.

When an asset trades beneath the cloud, it signals that bears are in control and that downward momentum is likely to persist. For HBAR, this means any attempted recovery will face strong resistance near $0.15 — a level that must be decisively breached for bullish sentiment to return.

Moreover, the cloud's downward slope reinforces the bearish bias, suggesting that even minor rallies could be short-lived without significant buying volume. Traders often interpret such formations as a warning sign, especially when combined with declining volume and weakening fundamentals.

Key Support at $0.13 in Focus

HBAR is now trading slightly above $0.13, marking its lowest price point so far in 2025. This level has emerged as a crucial support zone — one that could determine the next major directional move.

If selling pressure continues and demand fails to pick up, a break below $0.13 could trigger additional stop-loss orders and accelerate the downtrend. Such a scenario might push HBAR toward uncharted territory, potentially testing psychological levels near $0.10 or lower, depending on broader market conditions.

Conversely, if buyers step in and defend this support zone effectively, it could spark a contrarian rally. A strong accumulation phase near current levels might stabilize the price and set the stage for a retest of resistance at $0.15. Should HBAR manage to reclaim this zone, the path toward $0.17 becomes viable again.

Market participants should monitor trading volume closely during this period. A surge in volume accompanied by upward price movement would signal genuine buying interest and increase the likelihood of a sustained recovery.

👉 Explore real-time price analytics and tools that help identify key support and resistance levels.

Core Keywords:

Frequently Asked Questions (FAQ)

Q: Why is stablecoin supply important for HBAR’s price?
A: Stablecoin supply reflects on-chain economic activity. A declining supply indicates reduced usage of the Hedera network for transactions and DeFi applications, which lowers demand for HBAR and contributes to price weakness.

Q: What does it mean when HBAR trades below the Ichimoku Cloud?
A: Trading below the Ichimoku Cloud is a bearish signal, indicating that momentum favors sellers. It also establishes the cloud as a resistance zone, making upside movements more difficult without strong buying pressure.

Q: What happens if HBAR breaks below $0.13?
A: A breakdown below $0.13 could lead to increased selling momentum, potentially triggering algorithmic sell-offs and extending losses toward $0.10 or lower, especially in a risk-off market environment.

Q: Can HBAR recover if it holds $0.13?
A: Yes. If buyers defend the $0.13 level successfully and volume increases, it could lead to stabilization and eventually a rally toward $0.15–$0.17, especially if broader crypto market sentiment improves.

Q: How reliable is the Ichimoku Cloud for predicting HBAR movements?
A: The Ichimoku Cloud is widely used by technical traders for identifying trend direction and potential reversal points. While not foolproof, it provides valuable context when combined with volume analysis and on-chain metrics.

Q: Is now a good time to buy HBAR?
A: Only after thorough research. While near-term risks are elevated, long-term value depends on Hedera’s ability to regain developer interest and increase real-world adoption. Investors should assess their risk tolerance and consider dollar-cost averaging if entering at current levels.

Market Outlook and Strategic Considerations

While the current environment for HBAR appears challenging, market cycles are inherently dynamic. Periods of consolidation often precede renewed growth — especially when driven by technological upgrades or increased institutional interest.

Hedera has previously attracted attention for its high-throughput consensus model and enterprise-grade infrastructure. Should the network introduce new partnerships, improve developer incentives, or attract more stablecoin issuers back onto the platform, sentiment could shift rapidly.

For traders, monitoring both technical structure and ecosystem health is essential. Key metrics to watch include:

👉 Stay ahead with advanced charting tools and market insights designed for proactive decision-making.

Ultimately, while HBAR faces headwinds today, its long-term trajectory will depend on more than just price — it hinges on sustained innovation, user growth, and real utility within the decentralized economy.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are subject to high volatility and risk. Please conduct independent research before making any financial decisions.