- Hedera Hashgraph price crashed to the lowest point since February.
- The decline is in line with the performance of stocks and cryptocurrencies.
Hedera Hashgraph is struggling as a major crypto sell-off gets underway. HBAR, the network’s native token, plunged to a low of $0.067, the lowest level since February 6 of this year. It has plunged by over 31% from its year-to-date high, meaning it has moved into a deep bear market.
Hedera Hashgraph challenges remain
Hedera Hashgraph is one of the biggest players in the blockchain industry. It is a smart contract platform that is believed to be significantly superior to other popular chains like Ethereum, Ethereum Classic, and Kadena.
Hedera has superior transaction speeds and extremely low transaction costs. And it is backed by some of the best-known companies in the tech industry like Servicenow, Dell, IBM, and Google among others. These companies are all using Hedera’s technology to build their blockchain-focused applications.
The recent collapse of the HBAR price is mostly because of macro factors and the fact that crypto prices have recoiled. Bitcoin has failed to move above the key resistance at $25,000. It is also in line with the performance of the stock market. The tech-heavy Nasdaq 100 index has pulled back drastically.
Read more: How to invest in Hedera Hashgraph.
As I wrote on Wednesday, this price action is mostly because of the bond market. Data shows that short-term bond yields have surged to the highest level in months. The 2-year bond yield has risen to 5% while the 10% has moved comfortably above 4%.
Therefore, there is a sector rotation from riskier and speculative financial assets to safe ones like bonds. This also explains why the US dollar index has surged. As such, the upcoming economic numbers like non-farm payrolls (NFP) and inflation will determine what to expect.
HBAR price prediction
The daily chart shows that the HBAR price has been in a strong downward trend in the past few days. It has managed to crash to the 50% Fibonacci Retracement level. Most importantly, the coin has plunged below the 50-day and 100-day moving averages. The current price of $0.0672 has coincided with the highest level on October 12.
Meanwhile, the Relative Strength Index (RSI) is approaching the oversold level while the Stochastic Oscillator is already oversold. Therefore, Hedera Hashgraph will likely continue falling as sellers target the next Fibonacci Retracement level at $0.060. A move above the resistance point at $0.071 will invalidate the bearish view.
