- HYPE faces strong selling pressure with a price under $25, testing investor patience.
- Technical indicators suggest continuation of the downtrend with weak upside momentum.
- Short-term rallies are likely relief moves, not trend reversals.
HYPE has become a focus for traders in recent days, with market watchers closely monitoring key support levels. Analyst Altcoin Sherpa noted that the $20 mark is drawing widespread attention, driven largely by liquidation events from larger positions.
Nevertheless, some believe this could be a local bottom, while the fact is uncertain. Small selling volumes and smaller trading volumes contribute to market indecisiveness.
According to Sherpa, market players should be careful and not move in too quickly, since any bottom would occur slowly, and a rapid market price increase is not expected unless a massive move is observed in the Bitcoin market.
At the current level, HYPE is about $24.60, which falls just below the 9-day DEMA. This moving average has been a strong level, with more than a few attempts to move above it, yet each time failing at least over the recent weeks. This indicates the market recognizes there are buyers but lacks the push to move much higher.
Technical Charts Point to Continued Weakness
According to the analysis of TradingView, HYPE is in a strong downtrend. From late October, prices have maintained lower highs and lower lows, and it is clear that the sellers are in charge.
The momentum indicators are in line with this; the RSI (14) is in the 34 to 35 range, meaning that the sellers are in charge, but before the strong rebound, further declines may be required.
Other data also indicate how weak the market is. Pullback data indicate that the median pullback is 65%, while run-up data indicate that they are at their weakest point.
In essence, the buying community has failed to force the prices up, and rallies appear small. This combined effect of weak rallies and low highs shows that the market is actually distributing, where there are small rally-ups followed by larger sell-offs.
HYPE Short-Term Rallies Likely Only Relief Moves
Indeed, the current situation reveals that the short-term upward moves are just relief rallies, and not reversals of the overall trend. A shift in investor sentiment will be possible only when HYPE moves above the key resistance level of $26-$28. Until then, the market indication remains for a fall, and the traders are advised to remain cautious.
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