Decentralized exchange Hyperliquid’s token HYPE hit its 5-month low of $32 after being in a downtrend for almost three months. However, according to technical analysis, the token is gearing up for a massive spike.
Hype has been in a downtrend, making lower lows throughout the past 3 months. The weekly chart shows that the token was trading just below the weekly opening market price of $39. Although at times HYPE managed to emerge above the $39, however, the bear pressure was too high. As the week progressed, the bears gained the upper hand in the market, driving the prices from $39 to $32.
The bulls haven’t just yet given up. Even after suffering a deep crash, HYPE is making higher lows and is still recovering. In fact, some external factors gave HYPE a little push.
Anchorage Digital Bank came to HYPE’s rescue when the platform started to offer HYPE staking services.
The Anchorage press release read, “HYPE staking is available through Anchorage Digital Bank, the only federally chartered bank approved to offer staking, and through Anchorage Digital Singapore, a Major Payment Institution licensed by the Monetary Authority of Singapore. It will also be available through Porto, Anchorage Digital’s institutional-grade self-custody wallet that offers seamless asset movement and management all in one place.”
Although the prices of HYPE look disappointing on the weekly chart, however, when the macro trend is considered, there is a bullish falling wedge emerging on the chart. When a falling wedge forms, it shows that although the sellers are pushing the prices further down, their strength is waning.
The range of fluctuation gets narrower as the bulls build strength. There will come a threshold point when the bulls will spring into action. When the bulls take over the market, HYPE will break out of this pattern and rise above $50.
