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Hedera's Fundamental Flaws Challenge Its Long-Term DeFi Prospects Amid Intensifying Sell-Off

Hedera's Fundamental Flaws Challenge Its Long-Term DeFi Prospects Amid Intensifying Sell-Off

Bitget-RWA2025/11/23 18:44
By:Bitget-RWA

- HBAR's 2.5% drop below $0.1480 triggered heavy selling, with 168.9M tokens traded as institutional distribution accelerated. - Liquidity concerns emerged after a 14-minute trading halt and 138% volume spike failed to stabilize the $0.1486 resistance level. - Hedera's Wrapped Bitcoin integration aims to boost DeFi adoption but hasn't offset immediate bearish momentum or liquidity fractures. - Technical indicators show breakdown risk with key support at $0.1382, as sellers dominate with a risk-reward profi

HBAR's latest price movements have ignited discussions among market participants regarding whether the token's steep drop offers a buying window or reveals underlying vulnerabilities. On Nov. 16, the cryptocurrency dropped 2.5% to $0.1480,

and setting off a surge of selling activity that intensified toward the end of the trading day. Trading volume soared to 180% above its usual average during the sharpest decline, with 168.9 million tokens changing hands—pointing to significant institutional selling. This downturn came after , a move intended to strengthen the network's DeFi ecosystem, though it has yet to counteract the prevailing bearish sentiment.

The downward trend deepened on Nov. 17, as

slipped further to $0.1373 after failing to maintain its previous consolidation zone. A brief trading pause from 14:12 to 14:14, during which no trades occurred, heightened concerns about liquidity stability. , trading volume spiked by 138% to reach 146.94 million tokens, underscoring resistance at $0.1486, but buying interest quickly faded, leaving the token exposed to additional losses. Technical signals now indicate a risk of further breakdown, and previous resistance at $0.1445 expected to present obstacles to any recovery.

Although technical challenges persist, some experts maintain that Hedera's long-term outlook remains positive. The integration of

is anticipated to drive broader DeFi participation, though its benefits may not be immediate. Still, the current bearish environment—characterized by unstable liquidity and a declining price trend—has led to increased caution. Market watchers are now focused on whether HBAR can stay above $0.1382 or if a further drop will push it to even lower support zones.

At present, the risk-to-reward ratio appears to favor sellers, with a breach below $0.1440 likely targeting the $0.1382 mark. While optimistic traders may look for a buying opportunity if the price steadies, the ongoing lack of strong buying and liquidity issues suggest that downward movement remains the most probable scenario. Investors should keep an eye on trading volumes and significant resistance points before making new commitments.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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