HBAR Drops 3.456% as Traders Watch Key Support Amid Broader Market Weakness

HBAR, the native token of Hedera Hashgraph, has seen a continued decline amid a volatile crypto market, dropping 3.456% over the past 24 hours to $0.2419 [1]. The token is currently retesting a key ascending trendline that has served as a long-term support level for months, a critical juncture for traders monitoring whether the level holds or breaks. A successful defense could potentially lead to a rally toward $0.39–$0.50, while a breakdown may trigger a deeper correction [1]. This moment of consolidation is being closely watched as a potential turning point in the token’s near-term trajectory.

The recent movement in HBAR is not isolated; it reflects broader market anxieties, particularly around ETF approvals and regulatory uncertainties. On August 3, 2025, the token dropped 19% as market participants braced for the potential impact of a Hedera Spot ETF under SEC review [1]. Analysts from Cryptorank note that if HBAR manages to hold key support levels, it could break out toward $1.10, although such a move would depend heavily on regulatory clarity and continued institutional involvement [1].

HBAR's decline is part of a wider market downturn, with over $629 million in liquidations reported as of August 1, 2025 [5]. The token has also been affected by intense liquidation pressure in futures markets, with over $2.7 million in long liquidations recorded in a single day. This forced selling, primarily from bullish traders, has reinforced the bearish bias, suggesting that a significant portion of the market had positioned for higher prices before the recent drop [1]. The dominance of long liquidations highlights the fragility of current market conditions and the risk of further downward momentum.

Institutional sentiment is also cautious, as reflected in the Smart Money Index (SMI), which has fallen to 0.98, indicating a slight institutional selling bias [1]. This suggests that sophisticated investors are scaling back their exposure, a behavior often associated with prolonged periods of weakness. HBAR is currently hovering just above the critical support level at $0.22, with a break below that threshold likely to trigger more algorithmic selling and stop-loss orders. Traders are particularly focused on whether the token can hold above $0.205, a level that has been compared to Ethereum’s historical chart patterns [1].

Despite the recent weakness, HBAR has some fundamental positives. The token recently listed on Robinhood, increasing its accessibility and visibility to a broader retail audience [1]. This has been accompanied by renewed interest in Hedera’s enterprise-grade infrastructure, including its capacity for 10,000 transactions per second and strategic partnerships with major firms like Google and IBM. Additionally, the Thrive Protocol’s initiatives in DeFi and real-world asset integration have contributed to a cautiously optimistic view of the token’s long-term potential [1].

The broader market environment has not been supportive. A global selloff has impacted major crypto assets, with Bitcoin and Ethereum also experiencing downward pressure [5]. The U.S.-EU tariff deal, while intended to ease trade tensions, has introduced new uncertainties that investors are interpreting as a risk-on signal for cryptocurrencies. However, altcoins like HBAR have remained particularly vulnerable to shifts in sentiment and leverage-related selling [1].

Looking ahead, the coming days will be crucial for HBAR. Analysts are watching for signs of a wave (c) completion or a breakout from a triangle pattern, both of which could indicate a decisive shift in direction [1]. A sustained rally would require not only the holding of key support levels but also increased buying interest and a positive catalyst, such as regulatory clarity or institutional support. However, the ongoing exodus of smart money and the dominance of long liquidations suggest that maintaining upward momentum without such a catalyst will be challenging.

HBAR’s performance has highlighted the precarious nature of the current market environment, where geopolitical uncertainty and high leverage can significantly amplify price movements. While the token has shown relative strength compared to broader market declines, its path forward remains uncertain. Investors are advised to monitor key support levels and institutional activity closely, as these could provide early signals of a potential turnaround or further decline [1].

Source: [1] AInvest, https://www.ainvest.com/news/hedera-drops-3-456-traders-watch-key-support-level-2508/

[5] The, https://m.economictimes.com/crypto-news-today-live-01-aug-2025/liveblog/123028555.cms