HYPE Price Correction: Technical Indicators Show Weakening Momentum
HYPE Price Correction: Technical Indicators Show Weakening Momentum
Hyperliquid (HYPE) has seen a significant price correction, dropping 12.63% in just two days after recently reaching all-time highs. This downturn raises concerns and warrants a closer look at the underlying technical indicators.
Weakening Momentum: DMI and RSI Analysis
Key indicators suggest a shift in market sentiment. The Directional Movement Index (DMI) shows a rising Average Directional Index (ADX) at 21.41, indicating strengthening trend strength. However, the -DI surpassing the +DI signals growing bearish pressure. This bearish divergence, coupled with the RSI dropping below 40, further supports the weakening of bullish momentum.
The Relative Strength Index (RSI) currently sits at 39.52, a significant decrease from 56.26 just two days prior. While an RSI below 30 often indicates oversold conditions, the current reading suggests weakening bullish sentiment and potential for further downside.
HYPE DMI. Source: TradingView.
HYPE RSI. Source: TradingView.
Price Action and Potential Support Levels
Despite the recent drop, the Exponential Moving Averages (EMAs) still show a technically bullish structure. However, a potential "death cross" (where shorter-term EMAs cross below longer-term EMAs) could trigger a deeper correction. Key support levels to watch are $37.32 and $32.62. A break below these levels could indicate further downside. Conversely, a recovery above resistance zones at $43.98 and $45.77 could signal renewed bullish momentum.
HYPE Price Analysis. Source: TradingView.
Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct thorough research and consult a financial professional before making investment decisions.
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