Hedera Hashgraph has faced a significant downturn over the past five days, reaching a crucial support level amid ecosystem challenges. The price of Hedera Hashgraph (HBAR) has been in a steep sell-off after peaking at $0.1825 in April. It has since dropped by 65% and is currently hovering at its lowest level this year.

Challenges Within Hedera’s Ecosystem

Hedera’s recent struggles are rooted in challenges within its ecosystem, particularly in key areas like gaming and decentralized finance (DeFi). Despite being one of the largest cryptocurrencies, Hedera has a relatively small ecosystem compared to its larger peers.

In the DeFi space, Hedera has a total value locked (TVL) of just $58 million and only 6 decentralized applications (dApps). SaucerSwap, its largest decentralized exchange, holds less than $60 million in assets, while Stader has $29 million in staked assets and a $10 million stablecoin market cap.

In comparison, Tron has $8.13 billion in assets, $58 billion in stablecoins, and 2.2 million active addresses. Solana, another significant blockchain, has 1.23 million addresses and $3.4 billion in assets.

High-Profile Governance Council Members

Despite these challenges, Hedera Hashgraph has secured many high-profile companies to its governance council, including IBM, Nomura, Deutsche Telekom, Mondelez, and ServiceNow. Some of these companies are developing enterprise solutions using Hedera’s technology. For example, Arbrdn, a financial company with over £496 billion in assets, is working on a tokenized asset similar to BUIDL or Franklin Templeton’s FOBXX. Australian Payments Plus is also working on solutions to ease money transfer using Hedera’s technology. However, most council members have not yet announced their specific Hedera projects.

Hedera Hashgraph Price at Critical Level

The HBAR token formed a death cross pattern in June when the 50-day and 200-day Exponential Moving Averages (EMAs) made a bearish crossover. This pattern often indicates further declines, which explains why HBAR has dropped by 25% since then.

Currently, HBAR is trading near the critical support level at $0.061, which is the lowest point it traded at in July. A break below this level could signal further downside, potentially invalidating the bullish double-bottom chart pattern. The next key level to watch would be $0.045, its lowest point in October last year, representing a 27% decline from its current level.

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