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- Analyst warns HYPE may form a bearish reversal, potentially dropping to $13.
- HYPE’s price contraction signals a possible breakout, but bearish outlook suggests decline.
- MACD and RSI indicators point to sustained downside momentum, risking 44% drop for HYPE.
Analyst Ali Martinez has recently commented on the fact that HYPE could be in the process of initiating a bearish reversal at present prices. In a recent post on X, Martinez stated that HYPE is now enclosed within the symmetrical triangle pattern that forms when there is a consolidation period before a breakout. However, he said that a breakout in this area may reverse causing HYPE to plummet to a rate of as low as $13.
Bearish Outlook for HYPE
HYPE is currently trading at $21.88 and has witnessed a 8.25% downtrend in the course of one 24 hours. Martinez has noted that the price trend has contracted, and top and bottoming bounces are placed closely together. This contraction indicates that a breakout is likely to occur, except for Martinez’s bearish viewpoint says it will go down instead.
In case the price of HYPE goes below the crucial support rate of $19.29 it is predicted that it can decline as much as 44% of the current value. This value is crucial to place HYPE in a better market position, and a dip to $13 would further send the token on a level that could push it further down.
A bearish outlook is also supported by the momentum as indicated by the MACD. Currently, the MACD line is showing -0.339 while the signal line is showing a -0.051 indicating the outlook for further downside. Furthermore, the histogram is also bearish because most of the bars in it are in the red zone. The Relative Strength Index (RSI) is also below the 50 mark and therefore it is expected that the weakness maybe sustained in the down move.
Source: TradingView
Key Breakout or Breakdown
Over the next few days, traders are advised to pay close attention to the movements of HYPE’s price. If it fails to sustain this level, it could drop by 44 percent thus posing a great threat to the investor on the financial aspect. However, if the price turns around and transverse the bearish trend line which is represented by HYPE then we could see the price recovering.
Since the price action reached the region considered crucial for support level, one should await the signal confirming a breakout of the area. It underlined that this could lead to considerable losses, however, if stabilization is achieved, HYPE may recover. The rate remains mixed and volatile, so the next couple of days will decide on the direction of the HYPE token’s price.
