Hyperliquid (HYPE) price has dropped nearly 15% in the past seven days, causing its market capitalization to drop to $6.8 billion and fall out of the top 20 cryptocurrencies to 25th place. amid growing criticism focusing on issues of transparency and centralization of the project.
Although in a downtrend, technical indicators give mixed signals. The DMI shows continued bearish momentum, while the BBTrend hints at the possibility of stabilization. Whether HYPE can reverse the current situation probably depends on restoring investor confidence and overcoming existing market challenges.
Hyperliquid’s downtrend is strengthening
HYPE’s Average Directional Index (ADX) rose to 27.5, from 12.6 on January 7, signaling a strengthening trend. ADX is a technical indicator that measures the strength of a trend, regardless of direction, on a scale of 0 to 100. Values above 25 indicate a strong trend, while values below 20 indicate momentum. weak or absent quantity.
The rise in ADX shows that HYPE’s current downtrend is gradually developing, reflecting increased market activity and consolidation of bearish control.
Supporting this, +DI, which represents buying pressure, has plummeted from 24.3 to 10.9 over the past three days, highlighting the decline in bullish sentiment. In contrast, -DI, which measures selling pressure, increased from 18.1 to 30.9 over the same period, suggesting bearish activity is increasing.
This change in directional index confirms that sellers are in control of the market, which could push Hyperliquid further down unless there is a sharp increase in buying pressure. Rising ADX, along with falling +DI and rising -DI, points to a continuation of the short-term downtrend.
BBTrend positively brings hope to HYPE
Hyperliquid marked one of the biggest airdrops of 2024 and currently has BBTrend at 5.9, showing steady growth from 0.27 just yesterday. BBTrend, derived from Bollinger Bands, measures the strength and direction of a trend. Positive values indicate bullish price momentum, while negative values indicate bearish conditions.
HYPE’s BBTrend remained negative from December 26 to January 7, reaching a low of -14.7 on December 28, reflecting significant downward pressure during that period.
The recent movement into positive territory suggests selling pressure may be easing, although HYPE remains in a downtrend and is down nearly 15% in the past seven days, coupled with recent criticism over transparency issues and concerns about centralization.
An improving BBTrend could indicate a potential stabilization or change in sentiment. If BBTrend continues to rise, it could signal an opportunity for a price recovery. However, sustained buying interest is needed to counter the existing bearish momentum and confirm a reversal.
HYPE Price Prediction: Will the Downtrend Continue?
HYPE’s downtrend appears poised to continue, as its total value locked (TVL) has fallen to a yearly low and short-term EMAs have crossed below long-term ones.
This bearish structure suggests bearish momentum is increasing, with the next key support identified at $14.99. If this level fails to hold, HYPE price could continue to decline, potentially falling to $12, marking a 40% correction from current levels.
Conversely, if HYPE can reverse the trend, it could retest the resistance at $22. A break above this level, combined with a strong increase, could push the price to $29 and potentially surpass $30, bringing HYPE back into the top 20 altcoins on the market.
Such a recovery would bring HYPE closer to the level it maintained in the second half of December 2024.