Harmony ONE price dropped to an important support level as the broad cryptocurrency industry retreated. The ONE token also declined as the platform’s Decentralized Finance (DeFi) ecosystem developed some challenges. The coin is trading at $0.12, a few points above this week’s low of $0.1130. It is about 67% below the highest level on record, while its total value has dropped to about $1.48 billion.
Why has ONE price crashed?
Harmony is a leading smart contract platform that has been used to build and scale applications in all industries. Developers choose Harmony because of its architecture since it is a zero-knowledge (ZK) scaling platform. Also, the platform has unveiled a $300 million funding project. Furthermore, as part of its growth strategy, Harmony has launched Vision 2026, in which it seeks to be a leading platform in the decentralized future.
It has been widely used in sectors like decentralized finance (DeFi), metaverse, and non-fungible tokens (NFTs). Some of the best-known apps developed in Harmony are DeFi Kingdoms, one of the most popular web3 metaverse games in the industry. In addition, the Bored Ape Yacht Club (BAYC) has also moved to the platform.
Harmony ONE price has declined because of the general weakness in the cryptocurrencies industry. It is hard to see a cryptocurrency whose price has not dropped. Another reason is that some apps in its ecosystem have seen a decline in activity. For example, tranquil Finance has seen its total value locked (TVL) drop by 10% in the past seven days. Hundred Finance and LootSwap have also seen their TVLs drop.
Harmony ONE price prediction
The four-hour chart shows that the ONE price dropped to $0.1130, which was the lowest level since February 24th. As shown below, this was a notable level of support. Now, a closer look shows that the coin is forming what looks like a bearish flag pattern. In price action analysis, this pattern is usually a bearish sign. It has also moved below the 25-day and 50-day moving averages.
The Harmony price has also formed what looks like an inverted cup and handle pattern. Therefore, there is a likelihood that the coin will likely resume the bearish trend. If this happens, the next support will be at $0.10.