Token still near 2025 low despite short-term bounce.
Market activity remains muted across the Hedera network.
Recovery possible if price breaks above $0.15 zone.
Hedera’s native token HBAR is under mounting pressure as the network struggles with a sharp drop in stablecoin supply and declining market activity.
Despite gaining 5.61% in the past 24 hours to trade at $0.1372, HBAR remains close to its year-to-date low.
Over the past week, the token lost as much as 15% before staging a short-term bounce.
Meanwhile, Hedera’s stablecoin reserves have plummeted by more than 80% in just a month, highlighting severe liquidity issues that could weigh further on the token’s price.
Unless capital inflows pick up and on-chain activity rebounds, HBAR may breach critical support and extend its decline.
Stablecoin liquidity on Hedera drops to $41 million
According to data from DefiLlama, Hedera’s total stablecoin supply has declined to $41 million, marking its lowest level in the past 90 days.
This is a sharp reversal from the $216 million peak recorded last month.
The 80% drop reflects a broader decline in liquidity and user participation across the Hedera ecosystem.
Stablecoins are widely used as proxies for capital deployment in decentralised networks.
A significant contraction in their supply usually indicates reduced investor appetite for trading, lending, or yield farming.
This weakening demand reduces pressure on the native token to serve as gas or collateral, thereby putting more downside risk on HBAR.
If the stablecoin outflows continue, it may signal that users are migrating to alternative blockchains with more attractive yields or higher activity levels.
This could further strain Hedera’s token economy and its ability to retain value in a highly competitive decentralised finance (DeFi) landscape.
HBAR trades below key Ichimoku Cloud levels
From a technical perspective, HBAR’s current price action paints a bearish picture.
The token is trading below the Ichimoku Cloud on its daily chart, with resistance levels now positioned at $0.15 and $0.17.
These levels correspond to the indicator’s Leading Spans A and B, which act as dynamic resistance zones when prices remain underneath them.
The Ichimoku Cloud is commonly used to gauge market trends and momentum.
When the price is below the cloud, it typically reflects negative sentiment and a dominance of sellers.
For HBAR, these resistance zones must be reclaimed to shift the momentum in favour of bulls.
At the time of writing, HBAR is hovering at $0.1372, having risen 5.61% in the last 24 hours.
This recovery comes after days of steady losses, but the token remains close to its 2025 low of $0.13.
If this support level is breached again, there could be a cascade of further selloffs, particularly from short-term traders looking to limit losses.
Liquidity crunch threatens sustained sell pressure
The sharp reduction in stablecoin reserves has created a liquidity crunch on the Hedera network.
This restricts user activity and narrows the avenues for deploying capital.
As a result, network participation has stagnated, and fewer tokens are circulating in DeFi protocols or decentralised applications.
Without a recovery in stablecoin activity or a major catalyst to draw new users, HBAR’s fundamentals may continue to deteriorate.
In such a scenario, the market could see sustained selling pressure as investors rotate out of underperforming assets.
A break below $0.13 could trigger further losses, with lower support zones yet to be tested.
However, the current outlook may shift if buyers begin to accumulate at discounted levels.
Reversal possible if bulls reclaim $0.15
Despite the prevailing downtrend, a bullish reversal is still possible.
If investor sentiment improves and stablecoin liquidity returns to the Hedera network, it could spark renewed interest in HBAR.
A decisive move above $0.15 would be the first technical signal of recovery.
Such a breakout would allow HBAR to challenge the $0.17 resistance next, potentially reversing the multi-week bearish structure.
Until then, the token remains vulnerable to further losses, especially if macro market conditions stay risk-averse or network fundamentals weaken further.
