The Hedera Hashgraph Network is reflected in a sharp decline in water market capitalization in the chain, recording a decline in liquidity in the chain.
This decline reflects a broader slowdown in user activity across the network, and could put additional pressure on HBAR prices.
Fluid Crunch Hit Hedera
According to Defilama, Hedera’s Stablecoin market capitalization has fallen by more than 30% over the past week, highlighting a weaker user demand for the network.
At the time of writing, the Hedera Hashgraph network’s Stablecoin totals a market capitalization of $70.02 million.
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The decline in the market capitalization of Stablecoin on the network reduced liquidity and reduced user engagement. Stablecoins are an important measure of on-chain activity as they promote transactions, payments and other decentralized financial operations.
A decline in market capitalization suggests that fewer participants interact with the network.
For Hedera, a decline in demand for this network could put downward pressure on token prices as liquidity dries and investors’ sentiment calms down.
Additionally, on daily charts, HBAR’s moving average convergence branching (MACD) setup checks for bearish outlook. At press time, the HBAR’s MACD line (blue) falls below the signal line, suggesting deep losses in the short term.
MACD indicators identify trends and momentum in price movement of assets and help traders find potential buys or sales through a crossover between the MACD and signal lines.
When the asset’s MACD line (blue) falls below the signal line (orange), we show a breakdown of the market’s bullish structure. If this remains, the HBAR could break downwards away from its narrow range.
Hedera’s liquidity slide could push HBAR to $0.1963
HBAR is currently trading at $0.2403. If bearish feelings are reinforced, the token could drop towards immediate support levels at $0.2279. HBAR prices could drop to an additional $0.1963 if this support is not retained.
On the other hand, an increase in accumulation could negate the current bearish outlook. In that scenario, the HBAR was able to rebound and beat the resistance level past $0.2509.
As Hedera’s Stablecoin Markene Cap Plummets 30% first appeared on Beincrypto, the post-Hbar eyes faded fresh.
