After the hawkish Federal Reserve monetary policy minutes, the Hedera Hashgraph price continued its downward trend on Wednesday. The HBAR token crashed to a low of $0.2130, which is the lowest since March 24th. It has dropped by about 65% below its all-time high, bringing its market cap to about $4.2 billion.
Hedera Hashgraph is a blockchain project that seeks to become a better alternative to Ethereum. It claims to be 10x faster than most of its competitors. It also claims that its platform charges substantially lower than Ethereum and other platforms. Hedera has grown because it has a well-known team of validators who include companies like Ubisoft, IBM, Google, and ServiceNow.
However, Hedera Hashgraph faces multiple challenges. For one, it has become difficult to find some of the apps built using the platform. They are not listed in DappRadar and DeFi Llama, signalling that they are not prominent. Hedera has pointed to products built on its network like HashAxis, The Om, and Taskbar. But most of these platforms have not gone mainstream.
Another challenge is that competition in the industry has grown rapidly from the likes of Terra, Avalanche, and Cronos. For example, Cronos was launched recently and has seen its TVL grow to about 4 billion.
And like all cryptocurrencies, Hedera Hashgraph’s price is battling the hawkish Fed. The bank committed to embrace a more hawkish tone in the upcoming meetings. Investors tend to avoid risky assets in a high-interest rate environment.
The daily chart shows that the HBAR price has been in a strong bearish trend lately. It has moved below the short and longer moving averages while the Relative Strength Index has plummeted. It has also dropped below the support at $0.27, the highest level in March. Therefore, the path of the least resistance for the coin is lower. The next key support level will be at $0.1850.
This post was last modified on Apr 07, 2022, 08:48 BST 08:48