Most leading cryptocurrencies have headed south over the past 24 hours, yet Hyperliquid’s HYPE is among the few to defy the latest red wave.

While it has risen by a mere 1.5%, one analyst assumed it might be gearing up for a staggering 40% pump in the near future.

The Necessary Condition

Currently, HYPE trades at around $54.70, placing it above the lower boundary of an important channel depicted by Ali Martinez. He suggested that if the asset holds the $53 level, a move up to $75 is possible. Also speaking on the matter was Altcoin Sherpa, who claimed that HYPE’s current level is “a good spot for a bounce.”

“Expecting huge tradfi trading volumes to come over the next few days too, which helps,” the analyst added.

Some on-chain signals also suggest that the asset may post additional gains in the short term. CoinGlass’s data shows that exchange outflows have dominated over inflows in the last several days, meaning that investors have transferred their holdings from centralized platforms to self-custody solutions. This is considered a bullish factor since it reduces the immediate selling pressure.

The Bearish Case

The number of pessimists, though, seems even more well-represented. X user Cut recently doubted HYPE’s potential, reminding of its inability to break its all-time high and wondering if its price would make a substantial decline. Ryker joined the discussion, projecting a plunge to $32 “soon.”

Cryptorphic also gave their two cents, arguing that HYPE is showing weakness after losing its long-term trendline and its price has broken below the key ascending support. They believe that if the $57-$58 range turns into resistance, the breakdown could confirm further downside, envisioning a possible crash under $30.

Meanwhile, the whales’ activity reinforces the pessimists’ outlook. Lookonchain disclosed that large investors keep selling HYPE, revealing the case of a market participant who purchased over one million tokens at an average price of $18 17 months ago and unstaked and deposited the stash into FalconX and Coinbase, perhaps with the intention to cash out.

The waning institutional interest adds more weight to the bearish perspective. Spot HYPE ETFs, which attracted substantial capital in June, have not appealed to pension funds, hedge funds, and other conservative investors during most days of July, with outflows significantly dwarfing inflows.

Source: CryptoPotato