Harmony ONE price has been in a strong bearish trend in the past few months. It dropped to a low of $0.016, which was the lowest level since February 2021. It has fallen by more than 94% from the highest level, making it one of the worst performers in the industry.
Why has Harmony crashed?
Harmony is a blockchain project that hopes to help developers build fast decentralized applications (dApps). Apps in its ecosystem complete transactions in less than 3 seconds. Some of the top applications in its ecosystem are SushiSwap, Tranquil Finance, and Synapse among others.
Harmony was one of the biggest projects in the blockchain industry. This changed a few months ago afer the giant hack that led to a loss worth over $100 million. According to US investigators, the Horizon Bridge hack was instigated by North Korean hackers.
As a result, the total value locked (TVL) in the network crashed from an all-time high of over $1.3 billion to less than $30 million. This explains why ONE price has crashed in the past few months. Indeed, only 5 applications in its ecosystem have a TVL of over $1 million.
Harmony has been working on how to fix the network after the hack. In a statement, the developers announced that they had decided not to mint tokens to compensate those who lost their funds. They said:
“We propose not minting more ONE tokens nor changing our tokenomics with a hard fork of the protocol. Instead, we propose deploying our treasury towards both recovery and development.”
Still, from a fundamental perspective, Harmony has a long way to go to regain its trust among developers and investors.
Harmony ONE price prediction
The daily chart shows that Harmony has been in a strong bearish trend in the past few months. It has managed to move below the 25-day and 50-day moving averages. Its volume has crashed as demand remains much lower. The MACD has moved to the neutral level.
ONE price has also formed what looks like a head and shoulders pattern. Therefore, the coin will likely have a bearish breakout in the coming weeks. If this happens, the next key support level to watch will be at $0.015.