Bear flag looms over HYPE as ADX dips and MACD turns negative.
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Key Takeaways
After peaking on June 16, HYPE has dropped to $38.60, showing signs of weakened momentum.
HYPE’s price trades inside an ascending channel but has failed to break above the upper trendline.
A bear flag has formed between $30.18 and $38.80, and the ADX reading has dipped to 18.58
Hyperliquid’s (HYPE) rally may be losing steam, for now.
After hitting a new all-time high of over $45 on June 16, the token has since pulled back, currently trading around $38.60.
While there were earlier signs of a possible rebound, the latest indicators suggest HYPE could take a bit longer to make another run at its peak.
HYPE Pauses Its Uptrend
HYPE’s price action on the 4-hour chart shows the token still trading within an ascending channel.
On Monday, June 30, it made an attempt to break above the channel’s upper trendline—but fell short.
That rejection sent the price sliding from $40.84 as sellers stepped in to block further gains.
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While the token has since bounced off the channel’s lower boundary, momentum appears to be fading.
The MACD has slipped into negative territory, and the EMAs are showing a bearish crossover—both signs of weakening strength.
If this pattern holds, HYPE could struggle to reclaim the $40.84 level anytime soon. Instead, it may be headed back toward the support zone near $35.77.
From an on-chain perspective, Glassnode data shows that Hyperliquid Open Interest (OI) has fallen to $423 million. The OI is the sum of the value of all open contracts in the market.
When it rises, it means traders are deploying more capital into the market, which is bullish. But the decline is due to HYPE, indicating reduced exposure.
Should the trend remain the same, the HYPE’s price risks falling below the $35.77 support stated above.
HYPE has formed a bear flag on the daily chart. The bearish pattern began with a downward trend from $45.61 to $30.18, which formed the flagpole.
Later, it bounced to $38.80 and formed the flag. However, the position of the Average Directional Index (ADX) suggests that the Hyperliquid coin might not be able to hold the recovery.
The directional movement is typically strong when the ADX reading is above 25. But as of this writing, the ADX reading has dropped to 18.58.
This reading indicates that the HYPE uptrend is weak, and a retracement could be next. If that is the case, HYPE’s price could slide to $31.82 in the short term.
In a highly bearish market condition, it could plummet toward $23.21. Alternatively, if bulls regain control, this forecast might not happen.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
