Key Insights:
HYPE token struggles to break key resistance, showing signs of exhaustion in the face of bearish momentum.
A potential 10% pullback looms as HYPE nears critical support, with a possible test of the $25 level.
The current price decline seems driven by diminishing bullish participation, with volumes drying up as the downtrend persists.
HYPE (HYPE) has drawn considerable market attention recently, but its price performance paints a more cautious picture. Despite growing interest, the token continues to trade within a steeply descending trend, losing over 25% since the beginning of the month. As HYPE approaches a crucial support zone, it seems vulnerable to further downside, with a possible 10% pullback on the horizon.
This period marks an important phase in HYPE's price action. If bearish momentum continues, the downtrend could pick up pace. However, the outlook could quickly change if buyers step in and regain control. A sustained move above the $30 level before the end of the week would suggest strength and potentially reverse the current bearish structure. Until then, HYPE is at a pivotal technical junction.
Bearish Signals Emerge Amid Price Struggles
The daily chart of HYPE shows that after breaking out from a falling wedge pattern, the token surged toward the $35 resistance zone. However, it has repeatedly failed to secure a close above this level, triggering exhaustion among buyers and leading to a sharp price rejection. This has caused momentum to fade, with the Relative Strength Index (RSI) now trending downward in a parallel channel, signaling weakening bullish control.
Source: TradingView
This technical setup raises concerns that HYPE could be heading toward a local support range between $27 and $28. Should selling pressure persist, the token may test even lower levels, possibly reaching $25. Interestingly, the decline appears to be driven more by a reduction in bullish participation rather than aggressive selling, as trading volumes have gradually dried up.
Support Zone Holds Key for Near-Term Price Action
Despite the fading bullish momentum, the price drop seems corrective in nature rather than signaling a full trend reversal. The lack of conviction from sellers suggests that a rebound remains a possibility if HYPE can hold its support zone and see a revival in trading volume. If this happens, the token could make another attempt at challenging higher resistance levels.
Traders will be closely watching HYPE’s ability to hold the current support zone. A move above $30 could shift the focus back to bullish territory, while failure to do so may trigger a deeper pullback, leaving the token vulnerable to further losses.
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