Analysts warn that the token could face steep declines if selling pressure intensifies.
Hedera’s native token, HBAR, has entered a precarious phase after weeks of sharp declines, with technical signals suggesting the potential for an even steeper fall. Despite strong fundamentals and growing adoption, market analysts are warning that a risky chart formation could put HBAR holders under pressure in the near term.
As of August 31, HBAR was trading at $0.2243, representing a 26% slide from its yearly high of $0.3020 earlier this month. The token is now sitting at its lowest level since mid-July, raising concerns that a deeper correction may be imminent.
Technical charts reveal a descending triangle pattern, often regarded as one of the most bearish signals in market analysis. This formation is defined by horizontal support at $0.2257 and a downward-sloping trendline, highlighting growing selling pressure.
Adding to the bearish sentiment, HBAR has dropped below its 50-day Exponential Moving Average (EMA), while both the Relative Strength Index (RSI) and MACD have turned negative, reinforcing the view that momentum favors the bears.
If this trend holds, analysts caution that HBAR could tumble to the next major support zone near the psychological level of $0.10, a potential 55% downside from current prices. However, a breakout above the upper bound of the descending triangle could flip sentiment bullish, setting the stage for a rally back toward $0.30.
While the technical outlook looks grim, Hedera’s fundamentals suggest resilience and potential growth. One of the biggest near-term catalysts is the possibility of a spot HBAR ETF approval by Grayscale, which could attract significant institutional inflows from the U.S. market. Such a development has the potential to provide meaningful upside momentum for the token.
Hedera is also seeing rapid growth in its stablecoin ecosystem. Data from DeFi Llama shows that the network’s stablecoin supply surged by 50% in the past week alone, hitting $127 million. The network touts advantages such as near-instant settlement, predictable low fees of around $0.001 per transaction, and strong scalability, making it an appealing choice for payment providers and developers.
Beyond stablecoins, Hedera is expanding into real-world asset (RWA) tokenization, a sector widely viewed as a cornerstone of blockchain adoption. Its recent partnership with Swarm is a key example, enabling tokenized equities and creating new opportunities for investors to access traditional assets through decentralized rails.
In the short term, the charts suggest HBAR may face sustained pressure, particularly if bearish momentum drives it below its critical support levels. However, long-term fundamentals, from ETF speculation to DeFi expansion and RWA adoption — remain promising and could provide crucial support.
For now, investors may need to brace for volatility. A failure to hold above $0.2257 could confirm the bearish case, but positive regulatory or adoption news might quickly reverse sentiment, keeping HBAR’s long-term outlook far from written off.
