HYPE, the native token of the decentralized exchange Hyperliquid, has performed quite poorly lately, coinciding with the red wave sweeping through the entire crypto sector.
The token has been the subject of numerous price predictions, with some analysts envisioning additional declines in the short term.
Where is the Bottom?
Currently, HYPE is worth roughly $26, representing an 11% weekly loss and a 56% collapse from its all-time high of almost $60 registered in mid-September last year.
The popular market observer Ali Martinez analyzed the asset’s recent performance and concluded that it is breaking out of a certain triangle formation, risking a further plunge to as low as $20. Sjuul | AltCryptoGems also envisioned a deeper pullback ahead.
“As you can see, price action started to slow down and is locally breaking down. Since we have a big cap below, I would not be surprised to see a bigger correction coming,” he added.
Nebraskangooner appears to be the biggest pessimist. He claimed HYPE has been rejected at a key resistance level, forecasting the eventual collapse to zero.
HYPE’s recent exchange netflow reinforces the bearish scenario. Over the last few days, inflows have slightly surpassed outflows, suggesting that some investors have moved away from self-custody and shifted their holdings to centralized platforms. This doesn’t necessarily mean they intend to cash out, but in many cases, such transfers do precede selling activity.
How About a Rebound?
The optimists, who forecast that Hyperliquid’s native token could rally substantially in the near future, are just as vocal. X user HYPEconimst suggested that the possible path ahead is a sweep to $27.5, a reclaim of the $30.5 zone, and a pump to $45.5.
The analyst, who goes by the name ryandcrypto on the social media platform, argued that the asset’s price will not plunge below $20 “easily” and “would probably take BTC going well below $60K.”
For their part, TraderSZ envisioned significant volatility ahead and an eventual ascent above $36 in the coming months.
HYPE’s Relative Strength Index (RSI) also hints that a resurgence might be on the way. The technical analysis tool shows whether the asset is overbought or oversold by measuring the speed and magnitude of recent price changes. It runs from 0 to 100, where ratios around and below 30 indicate a rally could be incoming, while anything above 70 is considered bearish territory. As of this writing, the RSI stands just north of the bullish zone.
The post Hyperliquid (HYPE) Plunges by 11% Weekly: Further Losses on the Way? appeared first on CryptoPotato.
