HYPE Drops 6% to $46: Trend Reversal or Hidden Buy Signal for the Bulls?

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Hyperliquid (HYPE), that ever-so-charming digital asset, has decided to take a little nap, slipping down 6% to $46 over the last 24 hours. The week isn’t looking too shabby, though-a modest 2% gain shows it’s still got a little life left in it. Trading volume remains robust, with a staggering $647 million pouring through the pipes in that short time. Impressive, right? Or is it just a case of “look busy, do nothing”? 🤔

Now, this drop has followed a period of *oh so thrilling* upward movement, raising all sorts of questions: Is this a mere blip, or is it the beginning of a glorious downward spiral? We all love a good mystery. 🍿

Price Pulls Back Into Key Zone

Ah, here we are. HYPE is back in familiar territory, dancing near the top of a known demand area, somewhere between $43 and $45. This sweet spot has acted as support more times than anyone’s willing to count. Just recently, it lost the 50-day exponential moving average-currently sitting at $47-an ominous sign of pressure from the *oh-so-feared* downside.

If buyers can rally from here, we might just see a retest of $51, and who knows-if that resistance crumbles, maybe a glorious charge toward $60. But don’t get too excited, folks. If this support level falls apart, the next stop is at $36, where things could get ugly fast. You know, the kind of “hold your breath” moment that makes the stock market feel like a rollercoaster. 🎢

Ah, and for those of us who enjoy the technical mumbo-jumbo, the Relative Strength Index (RSI) is currently at 45. Translation? Weak momentum. The RSI is below its signal line and well away from the neutral 50 mark. Don’t get too excited about any oversold conditions; demand’s pretty sleepy right now. 💤

Lower High Signals Weakness

On the 12-hour chart, HYPE found itself rejected near $52. The poor thing tried, but alas, that pesky resistance level stepped in. A lower high has now formed, giving us all a little nudge to pay attention to a potential change in the market’s mood. And let’s be real, this doesn’t exactly scream *bullish future.* 😅

Market analyst Sjuul from AltCryptoGems shared his *oh-so-helpful* two cents:

And as expected, $HYPE got rejected at resistance and is forming a new lower high.

Hope my warning helped and you didn’t go long at resistance.

As I wrote a few times already, a high time frame lower low is not something to take lightly.

– Sjuul | AltCryptoGems (@AltCryptoGems) October 7, 2025

This follows the drop below support back in late September, marking the first lower low in the saga. Lower highs after lower lows are the kind of trend signals that make seasoned traders squirm a little. Looks like the bears are starting to pack their bags. 🐻

Net Outflows Spike: Selling Over?

Hold your applause, because here’s the juicy part: On October 7, HYPE saw a net outflow of $3.31 million. That’s right, folks. As the price plummeted from $53 to $46, traders were apparently in a rush to move their tokens off exchanges. Maybe they knew something we didn’t-or maybe they’re just avoiding the drama. 😏

Outflows often signal a reduction in selling pressure-interesting, right? After all, who likes dealing with angry sellers? Recently, these outflows have increased once again, after a brief surge of inflows. The mood on the spot market? Cautious, to say the least. 🤨

While the price action may have weakened, don’t count out the *big players* just yet. High-value wallets are still clinging to their hefty positions like a child holding onto a candy bar. Blockchain analytics platform Nansen reports that more than 50 smart traders are still holding over $60 million in HYPE. The top wallet alone controls a cool $18.2 million. Not bad for a rainy day. 🌧️

Trading activity remains elevated, with HYPE still topping the charts in perpetual open interest. As Nansen so brilliantly put it:

“$HYPE’s cooling, but smart money’s not flinching.”

So, while things may look a little chilly, the larger players aren’t heading for the exit just yet. No, they’re just standing there, poker faces on, waiting for the next move. 🎲

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2025-10-07 14:08