HBAR's Liquidity Crisis Sparks Fears of Market Instability

Hedera's HBAR token has plunged below critical support levels, triggering fresh concerns about liquidity and structural stability in the cryptocurrency market. The token recently fell to $0.1373, breaking its established $0.145 support after a late-session trading halt and sharp volume collapse highlighted acute market stress. This breakdown has shifted the technical outlook from neutral consolidation to a bearish trajectory, with analysts warning that institutional selling and failed recovery attempts could prolong the downward trend.

The selloff accelerated on Nov. 18, when HBAR dropped 6% to $0.144 amid a 71% surge in trading volume, as institutional participants triggered stop-loss orders near the $0.1500 resistance level. A double-bottom pattern emerged at $0.144, suggesting potential seller exhaustion, but the lack of sustained buying momentum left the market vulnerable to further declines. By Nov. 20, the token's slide to $0.1373 was accompanied by a zero-volume trading halt between 14:12 and 14:14, raising red flags about liquidity shortages and technical disruptions.

Technical indicators underscore the severity of the breakdown. HBAR carved out multiple lower highs within a $0.0074 range over 24 hours, forming a descending channel pattern with sequential weakness. Volume spiked to 145.7 million tokens on Nov. 18-73% above its moving average-reinforcing resistance at $0.1525 and signaling possible institutional distribution. A 180% volume surge during the Nov. 20 breakdown further validated the bearish scenario, with key support now testing at $0.1457.

Market participants are closely watching whether HBAR can stabilize above $0.1451, the next major support level, to avoid a deeper correction. A rebound would face immediate resistance at $0.1488, where prior rejection on elevated volume has created a supply overhang. Meanwhile, the failure to sustain rallies, including a 138% volume spike near $0.1486, suggests buyers remain hesitant despite short-term stabilization attempts.

The broader context of HBAR's decline includes weak market structure and lack of fundamental catalysts to offset technical pressures. Analysts note that the token's inability to hold key levels has eroded investor confidence, with distribution patterns and declining follow-through volume pointing to an extended bearish phase. For now, the focus remains on liquidity conditions and whether institutional selling cycles have completed, which could pave the way for a potential rebound-or further deterioration.