HBAR price poised for a crash as Hedera forms a risky pattern

HBAR price has plunged in the past two weeks, moving into a bear market, and a risky pattern points to more downside in the coming weeks. 

Hedera (HBAR) was trading at $0.2243 today, Aug. 31, down by 26% from its highest point this year. It is hovering at its lowest level since July 13.

Technical analysis points to HBAR price crash

The daily timeframe chart shows that the HBAR price has been in a downtrend in the past few weeks, moving from a high of $0.3020 in August to $0.2232. 

It has crashed below the 50-day Exponential Moving Average, a sign that bears are in control. Most notably, it has formed a descending triangle pattern, which is made up of horizontal support at $0.2257, and a descending trendline. 

The support coincided with the top of the trading range of the Murrey Math Lines. Meanwhile, the Relative Strength Index has plunged below the neutral point at 50, while the MACD indicator has crossed the zero line. 

Therefore, the most likely scenario is where the coin continues falling, with the next point to watch being the psychological target at $0.10, down by 55% from the current level. 

On the flip side, a move above the upper side of the triangle will invalidate the bearish outlook and lead to more gains, potentially to the ultimate resistance at $0.30.

Top Hedera catalysts can help to offset the bearish technicals

While Hedera’s price has bearish technicals, several fundamentals may help boost its performance. The most notable one is that the Securities and Exchange Commission may approve the spot HBAR ETF by Grayscale. Such a move would boost its performance as investors anticipate more inflows from American investors. 

HBAR price may also benefit from its growing market share in the stablecoin industry. DeFi Llama data shows that the stablecoin supply in the network has jumped by 50% in the last seven days to $127 million. 

A growing stablecoin ecosystem is a good thing, as analysts believe that it could disrupt the payment industry. In an article, Hedera explained that it was one of the best networks for stablecoin transactions for payment because of its near-instant transaction processing, fair prices, and a flat gas fee of about $0.001 regardless of the amount. 

Hedera is also working to boost its presence in the real-world asset tokenization industry. It recently announced a partnership with Swarm, which is now leveraging its technology to offer tokenized stocks on its platform.