Key Takeaways
- James Wynn predicted that Hyperliquid (HYPE) could fall below $40.
- HYPE’s price action indicates that if the asset fails to reclaim the $50 level, the bearish outlook remains intact.
- HYPE’s Long/Short ratio has fallen to 0.7671, reflecting traders’ bearish sentiment.
Hyperliquid (HYPE) has jumped over 11% in the past two trading days and appears to be reclaiming its support at $50, which it lost on September 22. Amid this recovery, renowned crypto trader James Wynn shared a bold prediction that is now garnering widespread attention from the crypto community.
Jame Wynn’s Bold Prediction for HYPE
In a post on X, Wynn shared a four-chart analysis, hinting that HYPE could drop below the $40 level. The key catalysts he noted for this bearish prediction are the formation of a rising wedge pattern, major token unlocks scheduled for next month, and Aster increasingly taking a large share of the market.
Such a prediction by renowned traders is now raising the question of whether this is an ideal selling opportunity or if the asset will continue its October bullish trend.
HYPE Current Price Momentum
Today, HYPE is up by 3.50% and is trading at $48.83, according to TradingView. Meanwhile, market participation has surged impressively, as reflected in the asset’s trading volume. Data from CoinMarketCap shows that HYPE’s 24-hour trading volume jumped 12% to $430 million.
Meanwhile, Hyperliquid’s DEX volume has reached $798.87 million, down from $1.845 billion on September 25, indicating weakening market activity and reduced investor participation, as revealed by the on-chain analytics platform DeFiLlama.
Also Read: Aster vs. Hyperliquid: Whale Loads Up ASTER as HYPE Faces Sell-off
Hyperliquid (HYPE) Technical Analysis: Upcoming Level to Watch
TimesCrypto’s technical analysis reveals that HYPE is in an uptrend, hovering above the 200-Exponential Moving Average (EMA) on both the daily and four-hour charts. Despite this uptrend, on the four-hour chart asset has formed a bearish rising wedge pattern, with the asset price currently hovering near the upper boundary.
Based on the current price action, if HYPE experiences a modest fall and closes a four-hour candle below the $48.30 level, it could drop by 6.35% and reach the $45.50 level. Conversely, HYPE’s bearish outlook would only be invalidated if it reclaims the key support at the $50 level.
At press, the Average Directional Index (ADX) stands at 20.59, indicating weak momentum, and HYPE may see a correction before its next leg up.
Traders’ Bearish Outlook
Coinglass reveals that traders’ market sentiment is bearish. According to derivative data, the HYPE Long/Short ratio has fallen to 0.7671, reflecting a strong bearish outlook. The metric further shows that 56.59% of traders are currently betting on the short side, while 43.41% are on the long side.
