Hedera Hashgraph’s native token, HBAR, has slipped 7% over the past week as investor sentiment weakens and broader market demand for the altcoin fades.
On-chain data reveals a sharp decline in liquidity across the Hedera network and growing pessimism among HBAR holders—factors that could push the token further to the downside in the short term.
SponsoredLiquidity Exodus Hits Hedera
According to DefiLlama, Hedera’s stablecoin market cap has plunged 53% in the past week, dropping to $70 million. The sharp decline signals a significant liquidity exit from the network within just seven days.
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A fall in stablecoin market cap points to reduced on-chain activity, since stablecoins are essential for trading, payments, and other decentralized finance operations. Therefore, lower stablecoin presence suggests fewer participants are engaging with the network, a trend that translates into weaker transaction volumes.
For HBAR, this liquidity decline raises the risk of further downward pressure on price as demand across the Hedera ecosystem continues to weaken.
Further, HBAR’s weighted sentiment remains below zero, confirming the growing bearish bias toward the altcoin. As of this writing, the metric stands at -1.08.
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The weighted sentiment metric tracks the ratio of positive to negative commentary around an asset by combining the volume of social discussions with their tone. A reading above zero reflects optimism and positive chatter, while a value below zero signals that negative emotions dominate the conversation.
HBAR’s current weighted sentiment suggests that its traders and community members are largely skeptical about the token’s near-term prospects. This can continue to limit their buying interest, worsening the downward momentum in HBAR’s price.
$0.212 Support Decides HBAR’s Next Move
As of this writing, HBAR is trading at $0.225, hovering above the $0.212 support floor. If the bears pull the token’s price toward this level and the bulls fail to defend it, further declines, possibly towards $0.192, could result.
However, a rebound in new demand for the altcoin will invalidate this bearish outlook. If buy-side pressure regains momentum, HBAR could reverse its downtrend and climb to $0.232.
