tl;dr
The price of Hyperliquid (HYPE) has dropped by nearly 15% in the last seven days, resulting in a market cap of $6.8 billion and a shift from the top 20 to 25th place among cryptocurrencies. Criticism regarding transparency and centralization issues has contributed to this decline. Technical indicato...
The price of Hyperliquid (HYPE) has dropped by nearly 15% in the last seven days, resulting in a market cap of $6.8 billion and a shift from the top 20 to 25th place among cryptocurrencies. Criticism regarding transparency and centralization issues has contributed to this decline. Technical indicators show conflicting signals, with the Average Directional Index (ADX) indicating a strengthening downtrend, while the BBTrend suggests potential stabilization. The DI, representing buying pressure, has decreased significantly, while the -DI, measuring selling pressure, has surged. This indicates a continuation of the downtrend. However, the positive BBTrend offers hope for a potential price recovery. The downtrend is expected to continue, with a critical support level identified at $14.99. Conversely, a reversal could lead to a retest of resistance at $22, with further potential for recovery.
The Average Directional Index (ADX) for HYPE has climbed to 27.5, up from 12.6 on January 7, signaling a strengthening trend. The ADX is a technical indicator that measures the strength of a trend, regardless of its direction, on a scale from 0 to 100. Values above 25 indicate a strong trend, while those below 20 suggest weak or absent momentum. The increase in ADX suggests that HYPE’s current downtrend is gaining traction, reflecting heightened market activity and solidifying bearish control.
Supporting this, the DI, representing buying pressure, has dropped significantly from 24.3 to 10.9 over the past three days, highlighting weakened bullish sentiment. In contrast, the -DI, which measures selling pressure, has surged from 18.1 to 30.9 during the same period, showing intensified bearish activity. This shift in directional indicators confirms that sellers are in control of the market, potentially driving Hyperliquid to further downside unless a substantial resurgence of buying pressure occurs.
Hyperliquid marked one of the biggest airdrops of 2024 and currently has a BBTrend at 5.9, showing steady growth from 0.27 just yesterday. BBTrend, derived from Bollinger Bands, measures the strength and direction of a trend. Positive values indicate bullish momentum, while negative values suggest bearish conditions. HYPE’s recent move into positive territory suggests that selling pressure may be easing, even as it remains in a downtrend. The improving BBTrend could indicate a potential stabilization or shift in sentiment.
HYPE downtrend appears poised to continue, as its total value locked (TVL) has dropped to a year-low, and its short-term EMA lines have crossed below the long-term ones. This bearish setup suggests increasing downside momentum, with $14.99 identified as the next critical support level. Conversely, if HYPE manages to reverse its trend, it could retest the resistance at $22. A breakout above this level, combined with strong upward momentum, might push the price to $29 and potentially above $30, bringing HYPE back to the top 20 altcoins in the market.