HBAR's 11.5% Plunge: Institutional Exodus and Liquidity Woes Signal Market Fragility

HBAR, the native token of the Hedera network, plunged 11.5% on November 21, breaking below critical support levels and triggering a cascade of stop-loss orders as institutional selling overwhelmed the market. The token fell from $0.1426 to $0.1281, with a massive 250.3 million-unit sell wave at 07:00 GMT-nearly double the 24-hour average-accelerating the breakdown. This marked a decisive shift to bearish momentum, erasing the $0.1350 support and leaving resistance firmly at $0.1400.

The selloff followed a series of prior declines, including a 6% drop on November 18 as HBAR fell to $0.144 amid a 71% surge in trading volume above average, breaking multiple support zones near $0.1500. Two days earlier, on November 17, the token breached key support at $0.1480, with volume spiking 180% above normal during the steepest decline phase. These technical breakdowns, combined with a descending channel pattern of lower highs and declining lows, signaled deteriorating market structure.

Liquidity concerns deepened on November 21 as HBAR slid from $0.1317 to $0.1277 in the final hour of trading. Volume spikes of 8.76 million and 11.13 million tokens occurred in rapid succession before trading activity abruptly stalled at the session low. This sudden freeze raised questions about potential technical halts or aggressive absorption by large players, creating conditions that could either exacerbate the downtrend or set the stage for a reversal if buyers re-emerge.

The broader crypto market contributed to the bearish sentiment, with the total market cap slipping below $2.9 trillion-a level not seen since May 2025. Institutional selling in HBAR mirrored wider struggles across digital asset treasury firms, whose combined market cap plummeted from $176 billion in July to $99 billion by November 21.

Technical analysis highlighted the severity of the breakdown. HBAR's price action now sits in a descending channel, with support anchored at $0.1277–$0.1281 and resistance at $0.1400. A further collapse below $0.1277 could target $0.1250, while recovery attempts face immediate resistance at the former support level of $0.1350. Volume data underscored the dominance of institutional distribution, with the 250.3 million-token sell wave representing a 98% surge above average, dwarfing retail-driven selling.

Despite ongoing network development efforts, including plans to integrate Wrapped Bitcoin (WBTC) to expand DeFi capabilities, HBAR's price action remained detached from fundamental progress. Canary Capital's HBAR ETF (HBR), which debuted with $250 million in assets under management, has seen mixed performance, reflecting the token's volatile trajectory.

The token's liquidity woes worsened on November 21, with a brief trading halt between 14:12 and 14:14 GMT and zero-volume periods raising red flags about market depth. These structural issues, coupled with a 138% surge in volume at key resistance levels, highlighted the fragility of HBAR's market infrastructure during stress events.