HBAR -1106.09% in 7 Days Amid Sharp Depeg from Bullish Momentum and Liquidity Deterioration

HBAR, the token associated with the Hedera Hashgraph network, plunged 1106.09% over the past seven days, marking one of the most dramatic short-term declines in the crypto market. The token fell to $0.22955 as of September 2, 2025, following a 89.44% drop within the past 24 hours. This collapse has sparked concern among investors and analysts, with speculation focusing on deteriorating liquidity, a loss of algorithmic peg mechanisms, and a broader shift in risk sentiment across digital assets.

The decline has been exacerbated by a weakening of the token’s algorithmic design, which previously relied on a balance of supply adjustments and protocol incentives to maintain value. Recent events have highlighted a structural vulnerability in the system, with token holders reporting rapid devaluation despite the network’s continued operation. While the Hedera network itself remains functional, the token’s price divergence from previous benchmarks indicates a loss of confidence in its stability mechanism.

From a technical perspective, HBAR has broken below key support levels that had defined its trading range in the last six months. The 50-day and 200-day moving averages have diverged significantly, with the short-term average far below the long-term trend, signaling bearish momentum. Additionally, the RSI has dipped into oversold territory, but this has not historically indicated a reversal in the asset’s performance, given the lack of positive on-chain flow or buying pressure.

The token’s monthly decline of 283.16% and annual slide of 2090.71% further underscore the severity of the bear market conditions. While these figures reflect long-term trends, the recent 7-day collapse has intensified discussions around the structural issues facing algorithmically managed tokens.