- Analyst Ali Martinez warns HYPE may experience a 44% decline, potentially reaching $13.
- HYPE is range-bound in a symmetrical triangle, signaling a possible bearish breakout.
- MACD and RSI indicate continued selling pressure, steeply declining below $19.29 support.
HYPE might be forming a bearish reversal pattern, which could result in a fall in the asset price states analyst Ali Martinez. In an X post on Monday, Martinez highlighted that HYPE is at this point range-bound within a symmetrical triangle that characterizes a consolidation phase before a breakout. However, according to the analyst, a breakout to a lower level of $13 is possible.
As of press time, HYPE is trading at $21.90, which is 8.25% lower than a day before. The analysis illustrates that the HYPE price pattern has become rather tight, with support and resistance levels coming closer. This type of price range contraction often leads to a breakout, but since the current trend is bearish, Martinez concludes that the prices will go down.
The decline will be steep if HYPE goes lower than the $19.29 support level. The prediction shows that the cryptocurrency might reach a value of $13, a 44% pullback from its present price. This could negatively affect HYPE’s position in the market, and the selling pressure may continue to increase.
Bearish Signals from MACD and RSI
MACD has also formed bearish signals at -0.337 in the MACD line and -0.049 in the signal line from the trend line. Based on the histogram, most bars are red, signifying that the price’s negative momentum aligns with the bearish view. Since the RSI is below the 50 level, it supports the notion that the selling pressure may persist.
Source: TradingView
Traders should watch out for the price levels of HYPE in the following days. The bearish scenario will be realized if the price fails to hold above the support level, leading to a 44% drop. However, if the price bounces back, it might stage a reversal and allow the cryptocurrency to climb back up.
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The price action has neared the critical level at support, and crucially, traders should wait for a break of bearish confirmation. If HYPE faces the predicted 44% decrease, there would be considerable financial loss. The market situation is still mixed, and the focus is on the potential to find a stand for stabilization or to continue the decline.
