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Will Hedera price crash as stablecoin supply and app revenue decline?

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Hedera price has formed a descending parallel channel pattern on the daily chart.

Hedera price has been in a downtrend over the past month as the token continues to be bruised by the geopolitical concerns that have pushed investors away from risk assets.

Summary

  • Hedera price dropped to a six-week low of $0.083, down over 12% in a month amid weak market sentiment and geopolitical tensions.
  • On-chain activity declined, with DeFi app revenue falling nearly 70% and stablecoin supply dropping 6%, signaling reduced network usage and liquidity.
  • Technical indicators remain bearish, with price trading in a descending channel and key support seen at $0.087.

According to data from crypto.news, Hedera (HBAR) price fell to a six-week low of $0.083 on Tuesday, down over 12% in the past month and over 20% from its year-to-date high.

Hedera price fell amid weakness in its underlying ecosystem activity as key performance indicators started to flash red. Data from DeFiLlama shows that revenue generated by DeFi apps on the network had slumped nearly 70% from the previous month’s high.

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A drop in app revenue means that a lower number of users are interacting with the Hedera ecosystem, signaling weakening demand for its decentralized applications and reduced overall network usage.

Third-party data also show that the total supply of stablecoins on the network has fallen 6% over the past 7 days to $52.71 million. Declining stablecoin supply typically reflects reduced liquidity and capital inflows on the network, further reinforcing signs of slowing activity.

Hedera price has also remained in a downtrend due to reduced investor appetite for risk assets amid the ongoing U.S.-Iran war that has led to a flight to more traditional safe-haven assets such as gold and U.S. equities.

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On the daily chart, Hedera price has been trading within a descending parallel channel pattern, a formation where the asset consistently makes lower highs and lower lows. As long as an asset trades within such a pattern, it will likely continue to face persistent selling pressure as it bounces between the upper and lower boundaries.

Hedera price has formed a descending parallel channel pattern on the daily chart.
Hedera price has formed a descending parallel channel pattern on the daily chart — April 1 | Source: crypto.news

Technical indicators also appear to portray a bearish outlook for Hedera price in the upcoming sessions. Notably, the Bollinger Bands have begun to narrow, with the price trading below the middle band, suggesting contracting volatility while the short-term trend remains tilted to the downside.

The Aroon Down is at 92.86% while the Aroon Up remains at 0%, indicating strong downward momentum and that a recent low has likely been established within the current trend.

For now, the immediate support level for Hedera price lies at $0.087, which aligns with the 23.6% Fibonacci retracement level. A drop below this level could increase selling pressure and open the door for a move toward lower support zones.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Crypto World

Trump Threatens to Hit Iran Extremely Hard in the Coming Weeks

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Trump Threatens to Hit Iran Extremely Hard in the Coming Weeks

Crude oil rose to over $100 a barrel while Bitcoin fell 2% after a national address by US President Donald Trump on the conflict in Iran, where he vowed to hit Iran “extremely hard” over the next few weeks. 

Speaking at the White House on Wednesday during an address to the nation, Trump said the US military is “very close” to finishing “Operation Epic Fury,” claiming to have wiped out Iran’s nuclear and naval capabilities while also significantly hampering its drones, missiles and weapon factories.

“I can say tonight that we are on track to complete all of America’s military objectives shortly. Very shortly, we are going to hit them extremely hard over the next 2 to 3 weeks.”

Stocks, crude oil, and crypto prices have been impacted by conflict in the Middle East over the last few months. Oil prices eased on Tuesday after Trump said the war would be wrapping up in the next few weeks, though his latest speech has seen it rise again. 

At the time of writing, the price of crude oil has spiked back above $100 per barrel to $103.59. Meanwhile, Bitcoin dipped by around 1% over the course of the speech and has since fallen further to $66,904, down 2% since the start of the speech.

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However, Trump also said discussions are ongoing. Both sides have made key demands for ending the conflict, with the US pushing for Iran to dismantle its nuclear programs, open up commercial shipping channels and stop regional support for proxy groups.

Iran wants a permanent end to the war, compensation for damages and an end to US military presence in the region, among other demands.

“The new group is less radical and much more reasonable. Yet, if during this period of time no deal is made, we have our eyes on key targets.”

Source: The White House

Trump says oil blockade will end soon

Conflict in the Middle East intensified in February after the US and Israel launched strikes against Iran. This ultimately saw Iran respond by leading a blockade of the Strait of Hormuz in a bid to cut oil supply on one of the world’s busiest shipping channels.

Related: Who is Kevin Warsh? Trump’s Fed pick wants ‘regime change’ at central bank

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The president claimed that the stock market will pick back up soon as the conflict begins to wind down, while gas prices will drop as he argued that Iran will remove the blockade “naturally” so that it can start rebuilding the economy.

“And in any event, when this conflict is over, the strait will open up naturally. It’ll just open up naturally. They’re going to want to be able to sell oil because that’s all they have to try and rebuild. It will resume flowing and the gas prices will rapidly come back down. Stock prices will rapidly go back up,” he said.

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