Hedera's HBAR token has declined today, with the price dropping 3.94% over the past 24 hours to $0.05189. This has lowered Hedera's total market capitalization to $1.67 billion.

HBAR's trading volume stands at $72.72 million for the past day. This points to decent market activity despite the price weakness. Over the last hour, HBAR has ticked up 0.17% but remains in the red.

Is Hedera Headed Lower from Here?

Hedera's multi-day slide is concerning for bulls after its failed breakout attempt earlier this month. HBAR faces immediate support around $0.05. Failing to hold this level risks a drop towards the 2022 low near $0.04.

The negative momentum aligns with HBAR's 0.79% pullback over the past week. However, the monthly performance still shows a slight 3.47% gain, signaling some lingering bullishness.

To turn bullish again, HBAR needs to overcome resistance at $0.055 and post higher highs. Otherwise, the path of least resistance remains to the downside amid broader risk-off conditions.

What's Weighing on Hedera Currently?

HBAR's lackluster price action comes despite Hedera's strong technical fundamentals and developer activity. Some of the pressure likely stems from wider macro uncertainty weighing on altcoins.

As a long-term play, competition from alternative L1s like Algorand and Avalanche may also be factoring in. Traders may be rotating exposure into rival layer-1s with staking rewards.

But Hedera retains differentiated capabilities like hashgraph consensus and its governing council model. Once macro conditions stabilize, HBAR could regain its upside momentum. The project still holds long-term promise.

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