HYPE – the native token of the decentralized crypto exchange Hyperliquid – currently trades at around $55.50 (per CoinGecko), translating into a major 22% decline on a monthly scale.

According to some market observers, conditions may even worsen from here, with expectations of a further downtrend.

How Much Lower?

Earlier this week, Ali Martinez analyzed HYPE’s recent performance and revealed that its TD Sequential indicator has flashed a sell signal, which could potentially lead to a plunge to $50.

BATMAN and Altcoin Sherpa are also among the pessimists. The former claimed the liquidity sweep setup has played out perfectly, warning about the formation of a possible local top that could be followed by a pullback.

The latter argued that HYPE may not yet have reached its cycle bottom, suggesting the valuation might tumble to the low $50s or high $40s in the short term. At the same time, the analyst remains bullish on the asset for the long term, saying:

“Regardless, it’s 1 of the few coins you can hold for months on end and sleep comfortably knowing the fundamentals are the best in crypto.”

X user Ryker appears to be among the biggest bears. The popular trader was recently asked about their opinion on HYPE, predicting that its price could soon plummet to $32.

What About a Pump?

Crypto X is not entirely filled with pessimists, as some think Hyperliquid’s native token might be on the verge of a significant resurgence. The analyst using the moniker Gerla noted that the asset has been moving within a descending channel for the past month, opining that one breakout could send it “flying.”

For his part, Martinez claimed that HYPE has the chance to rally to $64 and even $75 as long as bulls hold the crucial zone at approximately $53.

The token’s Relative Strength Index (RSI) supports the uptrend perspective. The technical indicator’s ratio has dropped well below 30, meaning that HYPE has entered oversold territory and could be gearing up for a pump. The RSI runs from 0 to 100, where anything above 70 is typically considered a precursor to a correction.

Source: CryptoPotato