HYPE Cryptocurrency Analysis

Overview

HYPE, at press time, was the most searched cryptocurrency in the market over the past 24 hours.
Several sentiment indicators and on-chain metrics hinted at a bullish outcome for the asset.

HYPE has experienced turbulent market conditions lately, declining by 30% over the past month. This trend intensified in the last 24 hours, resulting in a drop of 19.86% in value, bringing the price down to $15.97.

However, there are signs that the asset could be on the verge of a reversal. Bullish indicators have begun to emerge, supporting the potential for a market rally.

Liquidity Flow and Search Interest

According to CoinGecko, HYPE has become the most searched token in the last 24 hours, surpassing Berachain (BERA), Ethereum (ETH), and Sui (SUI).

This surge in search interest suggests growing curiosity from new market participants, likely from those assessing HYPE as a buying opportunity.

AMBCrypto’s analysis indicates that HYPE has now entered the buy zone on the chart, marked by the Fibonacci support level, with the Relative Strength Index (RSI) nearing the oversold zone.

At press time, HYPE was trading close to the support level featured on the Fibonacci support line at $16.072, which may instigate a slight pullback, alongside a potential substantial move upwards.

AMBCrypto’s research noted that HYPE could breach the Fibonacci support level as the RSI further enters the oversold territory.

The RSI measures the speed and magnitude of price changes to identify whether conditions are overbought (above 70) or oversold (below 30). Currently, with an RSI reading of 30.67, HYPE’s price might dip lower, but historically, this level has often led to significant rebounds, possibly indicating a trend reversal.

In terms of liquidity movement, buyers are starting to engage. The total value locked (TVL), which tracks incoming and outgoing liquidity in the protocol, increased by $1.74 million in the last 24 hours, rising from $638.28 million to $640.02 million.

This liquidity influx, despite the larger market downturn, typically signifies early accumulation ahead of a significant rally that could see HYPE rise to $35.

Bullish Indicators

In the derivatives market, several indicators support a bullish case for HYPE, including a rising funding rate and a positive OI-weighted funding rate. Meanwhile, Open Interest has seen a decline on the charts.

As of now, HYPE’s funding rate is 0.0098%, among the highest in the crypto space. This reflects that buyers have been paying a premium to keep their positions, minimizing price discrepancies between spot and futures.

The bullish sentiment aligns with the altcoin’s OI-weighted metrics, which compare Open Interest and funding rate to indicate price direction. This metric is in positive territory at 0.0472%, down slightly from previous highs.

The slight decline may be associated with unsettled derivative contracts, which saw an 8.37% decrease in the last 24 hours amid a market trend against bullish traders.

In summary, market sentiment is gradually shifting towards bullishness. If these positive indicators continue, HYPE could witness a significant upward price movement.