HYPE Price Dip: Technical Analysis
Hyperliquid (HYPE) Price Under Pressure
Hyperliquid (HYPE) has experienced a 16% drop in the past week, with technical indicators pointing towards a bearish trend. Momentum has significantly weakened, as evidenced by the Relative Strength Index (RSI) falling below 40, showing limited buying interest since late March.
Bearish Signals from DMI
The Directional Movement Index (DMI) highlights increasing seller dominance. The Average Directional Index (ADX) is rising, suggesting a potential strengthening of the downtrend. The +DI has dropped sharply from 25.68 to 12.79, while the -DI has risen from 11.29 to 23.4, clearly indicating bearish momentum.
An ADX approaching 25 suggests increasing trend strength, although confirmation is pending. Traders should monitor price action closely. Unless the +DI reverses, further downside for HYPE is possible.
Source: TradingView
Weakening Buying Momentum (RSI)
The RSI has fallen significantly, dropping from 63.03 to 39.39 in the past two days. This indicates weakening bullish momentum and increasing bearish pressure. The RSI hasn't reached 70 since March 24th, signifying a lack of strong buying interest.
An RSI below 30 suggests an oversold condition and potential rebound; however, the current level at 39.39 shows ongoing selling pressure. Further movement towards 30 would increase the likelihood of further price drops or consolidation.
Source: TradingView
Will HYPE Fall Below $11?
HYPE is at a critical juncture. A continuation of the downtrend could push the price below $11. This would align with the weakening momentum indicators and growing bearish pressure.
Conversely, if buyers regain momentum and break above the immediate resistance at $12.19, a recovery toward $14.77, or even $17.33, is possible. This would indicate a complete reversal of the current bearish trend.
Source: TradingView
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Conduct thorough research and consult a professional before making investment decisions.
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