The price of Hedera Hashgraph has gone back significantly in the last few days as the outlook for the crypto industry has worsened.
Hedera Hashgraph (HBAR) down to a low of $0.2483, another seemingly popular drop cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Most cryptocurrencies have fallen, bringing the total market capitalization of the coins to $3.24 trillion.
Hedera's backlash coincides with a decline in the overall value of assets locked in the decentralized financial ecosystem. according to Call DeFithe TVL has dropped to 675 million HBAR, down from the year-to-date high of 1.35 billion tokens.
In US dollar terms, the TVL has fallen from $209 million on December 3 to $165 million. This decline indicates that investors are pulling money out of Hedera's DeFi platforms such as SaucerSwap, Bonzo Finance, and HbarSuite.
To be fair, Hedera isn't the only blockchain network experiencing a decline in DeFi assets. Another popular chains like CardanoEthereum, and Solana have also seen capital flight in recent days. Historically, investors tend to leave these platforms during periods of broader cryptocurrency market weakness.
Despite the current downturn, Hedera Hashgraph has some positive fundamentals that could drive its price higher in the long term. The network has partnerships with major global companies such as IBM and Google, both of which are members of its governing council.
Hedera is also positioning itself as a major player in the Real World Fund Real World asset tokenization industry. Tokenization refers to converting illiquid assets into liquid resources that can be easily transferred and traded. Hedera's fast transaction speeds and low costs make it an attractive choice for developers in this space.
Another potential trigger for HBAR is the potential for the Securities and Exchange Commission to approve the spot HBAR ETF in 2025. According to a senior Bloomberg analyst, the SEC may approve the ETF because it does not classify HBAR as security.
Hedera Hashgraph price is forming a bullish pattern
The daily chart shows that the HBAR price is forming a bullish chart pattern. Specifically, it develops a falling wedge pattern, which is usually a consolidating asset between two falling trends. A bullish breakout often occurs when the two lines converge.
In addition, Hedera is forming a bullish pennant pattern, characterized by a long uptrend followed by consolidation. This pattern also often leads to strong breakouts over time. HBAR remains above the 50-day moving average and the key support and resistance point of the Murrey Math Lines is at $0.1953.
Therefore, a contrarian case can be made for Hedera's price. If the bullish patterns continue, HBAR could rebound and reconfirm its all-time high of $0.3940, representing a potential gain of around 66% from the current level. However, the bullish view would be invalid if the coin falls below the key S&R level at $0.20.
