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Hyperliquid (HYPE) price is attempting to recover as market activity stabilizes after a volatile December. HYPE is rising from the oversold RSI level, currently at 44.4, suggesting the possibility of a further correction in the short term.
The platform’s daily cash flow, which hit a record low of -$243 million on December 23, now remains between -$18 million and $28 million, reflecting more stable market sentiment. With key resistance at $28.95 and support at $22, the coming days will determine whether HYPE can maintain its recovery momentum.
HYPE’s RSI Neutral Since December 15
HYPE, one of the largest airdrops of 2024, currently has a Relative Strength Index (RSI) of 44.4, up significantly from 32.8 in recent days. RSI, a popular momentum indicator, measures the speed and magnitude of price movements on a scale of 0 to 100.
Values below 30 indicate oversold conditions, with the possibility of a price recovery, while values above 70 indicate overbought conditions, often signaling a possible correction. With RSI at 44.4, HYPE remains in the neutral zone, indicating a balance between buying and selling pressure.
Since December 15, Hyperliquid’s RSI has consistently remained in the neutral range, reflecting a lack of strong momentum in either direction. This neutral position suggests that HYPE may continue to correct in the short term, unless there is a major change in market sentiment.
Although the recent rise in RSI points to a slight increase in buying pressure, it remains below the key 50 threshold, suggesting that upside momentum is not yet strong. For HYPE to gain further strength, its RSI needs to surpass 50, potentially driving price action further.
Hyperliquid Cash Flow Hits Negative Record
Hyperliquid posted an impressive record of $181 million in cash flow on November 29, 2024, reflecting strong trading activity and investor interest. After this peak, the platform saw inflows decline, with a long streak of positive inflows exceeding $70 million from December 11 to 16.
These flows are a measure of net capital entering or exiting the platform, providing insight into market sentiment and liquidity. Positive money flows typically indicate increased interest and confidence, supporting stable or bullish prices.
However, on December 23, Hyperliquid recorded a strong outflow of -$243 million, marking a negative milestone. Since then, flows have stabilized, ranging from -$18 million to $28 million. This stability shows that market sentiment is balanced after significant cash outflows, without strong accumulation pressure or dominant selling.
In the short term, this could mean HYPE prices are likely to correct as the market searches for balance. If cash flows increase, it could boost price momentum; while persistent negative cash flows could signal potential downside risks.
HYPE Price Prediction: Will the Downtrend Continue?
HYPE price is currently attempting to reverse the recent downtrend and regain upward momentum. If the recovery continues, the price could test resistance at $28.95, suggesting that the previous increase was not solely due to the airdrop.
A successful breakout above this level could pave the way for further gains. The next targets, $31.4 and $35.2, signal a strong bullish phase.
Conversely, if the downtrend continues and selling pressure increases, HYPE could test immediate support at $22.00. If this support fails to hold, the price could fall further to $14.99, which would mark a major correction of 37%.
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