Hyperliquid (HYPE) has seen its price drop nearly 15% over the past week, bringing its market cap to $6.8 billion and knocking it from the top 20 cryptocurrencies to 25th place. This downtrend arises amidst criticism concerning transparency and centralization.
Technical indicators show mixed signals. The DMI indicates continued bearish momentum, while the BBTrend suggests a chance of stabilization. The ADX climbed to 27.5, signaling a strong downtrend, as selling pressure surges and buying pressure wanes.
Despite the tapering bullish sentiment, the BBTrend's positive shift hints at easing selling pressure and potential stabilization. If sustained, this could signal a recovery opportunity.
Currently, HYPE's downtrend faces increased momentum, with its total value locked (TVL) at a year-low and a bearish EMA crossover. Protecting $14.99 is crucial; failure to hold this support could see HYPE decline further to $12, a significant 40% drop.
Alternatively, a trend reversal might challenge resistance at $22, potentially driving the price up to $29 or above $30, reinstating HYPE among the top altcoins. Such recovery would bring HYPE back to December 2024 levels.
