Hyperliquid (HYPE) plunges 11% weekly: further losses on the horizon?

Is HYPE at Risk of Falling to $0?

The token has been the subject of numerous price predictions, with some analysts predicting further declines in the short term.

Where is the bottom?

Currently, HYPE is worth around $26, which represents a weekly loss of 11% and a 56% collapse from the all-time high of almost $60 recorded in mid-September last year.

Popular market observer Ali Martinez analyzed the asset’s recent performance and concluded that it is breaking out of a certain triangle formation, risking a further plunge to a low of $20. Sjuul | AltCryptoGems too in mind a deeper setback in prospect.

“As you can see, the price action has started to slow and is breaking down locally. Since we have a big limit below, I wouldn’t be surprised if a bigger correction is coming,” he added.

Nebraskangooner seems to be the biggest pessimist. He claimed HYPE has been rejected at a key resistance level, predicting an eventual collapse to zero.

The recent HYPE move reinforces the bearish scenario. In recent days, inflows have slightly exceeded outflows, indicating that some investors have abandoned restraint and moved their investments to centralized platforms. This does not necessarily mean that they intend to cash out, but in many cases such transfers do precede the sales activity.

What about a rebound?

The optimists, who predict that Hyperliquid’s native token could rise substantially in the near future, are just as vocal. X-user HYPEconimst suggested that the possible path going forward is a sweep to $27.5, a reclaim from the $30.5 zone and a pump to $45.5.

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The analyst, who goes by the name Ryandcrypto on the social media platform, argued that the price of the asset will not “easily” fall below $20 and would “likely drop BTC well below $60,000.”

For their part, TraderSZ in mind significant volatility ahead and an eventual rise above $36 in the coming months.

HYPE’s Relative Strength Index (RSI) also indicates that a rebound is underway. The technical analysis tool shows whether the asset is overbought or oversold by measuring the speed and magnitude of recent price changes. It ranges from 0 to 100, with ratios around and below 30 indicating a rally could occur, while anything above 70 is considered bearish territory. At the time of writing, the RSI is just north of the bullish zone.