Key Takeaways
- HYPE has experienced an 8% depreciation within a 24-hour period, now trading below the critical threshold of $28.
- The Open Interest (OI) for HYPE is witnessing a decline, reflecting diminished engagement from retail investors.
Current Market Overview: HYPE Dips Below the $28 Support Level
HYPE, the native cryptocurrency associated with the Hyperliquid decentralized exchange, has recorded a significant decline of 8% over the past 24 hours. This performance positions HYPE as the underperformer among the top 20 cryptocurrencies by market capitalization.
This downturn corresponds with a broader trend of underperformance observed across major cryptocurrencies, including Bitcoin. Analysts suggest that should bearish momentum persist, HYPE may be propelled towards the psychologically significant level of $20, particularly in light of current market consolidation.
The adverse performance of HYPE can be attributed to a waning interest from retail investors, exacerbated by prevailing market conditions. Despite anticipations surrounding a potential interest rate cut by the Federal Reserve on Monday, such expectations have failed to rekindle enthusiasm for the Hyperliquid platform among traders.
Data from CoinGlass indicates that HYPE’s futures Open Interest (OI) has declined by 5.91% over the past day, now standing at approximately $1.44 billion. This decrease signifies a notable contraction in liquidity within HYPE derivatives markets as traders adopt a cautious wait-and-see approach.
Moreover, liquidations in long positions since Monday have surpassed $1.2 million, overshadowing short liquidations which amounted to approximately $88,160. This disparity highlights a pronounced bearish sentiment among market participants.
Prognosis: Potential Further Declines Towards $20
An analysis of the HYPE/USD four-hour chart reveals a persistently bearish trend as Hyperliquid has experienced an 8% depreciation within the last day. Currently, the asset is trading below $28, having breached its support level around $29.37.
If this bearish trajectory persists, there is a substantial likelihood that HYPE’s daily candlestick will close below the resistance level situated at $26.03. A continued selloff could subsequently draw attention to the October 10 low of $20.84.
The Relative Strength Index (RSI) currently stands at 29, indicating that HYPE is situated within oversold territory and may experience additional losses in the immediate future. Concurrently, the Moving Average Convergence Divergence (MACD) suggests an increase in bearish momentum, reinforcing that sellers currently dominate market dynamics.
Conversely, should bullish forces regain control over the market environment, HYPE may have the potential to reclaim the psychological threshold of $30 before embarking on an upward trajectory towards the resistance trendline located near $34.00.
