Usman Salis
The cryptocurrency market's latest attention-grabber, HYPE, is showing early signs of a potential reversal after failing to break through critical resistance levels. What started as a promising rally has now turned into a cautious wait-and-see scenario for traders monitoring the token's next move.
HYPE Price Shows Signs of Weakness at Resistance
The recent upward momentum in HYPE appears to be hitting a wall. After reaching a peak of $45.98, the token has retreated to around $45.61, suggesting that buyers are losing their grip on the market. This pullback from resistance levels indicates that sellers are stepping in, creating doubt about the sustainability of any further gains.
Trader highlighted in his recent market analysis that this rejection below the resistance zone could signal the beginning of a bearish phase.
His technical assessment suggests that without a swift recovery, HYPE might be heading for lower prices in the coming sessions.
Selling Pressure Builds as Technical Indicators Turn Negative
The current price action shows classic signs of a failed breakout attempt. When HYPE couldn't hold above the $46 threshold, it opened the door for short-sellers to enter the market. The breakdown from the upper range boundary has created a bearish technical setup that many traders are now watching closely.
This type of rejection pattern often leads to accelerated selling, especially in volatile tokens where sentiment can shift rapidly. The momentum that carried HYPE higher seems to be evaporating, replaced by caution and profit-taking activity.
Support Test at $43.4 Becomes Critical
If the current weakness persists, HYPE is likely to test the $43.40 support zone. This level represents a key battleground where buyers might attempt to defend the token from further decline. A break below this support could trigger additional selling pressure, potentially pushing the price toward the $43.00 area or lower.
However, crypto markets are known for their unpredictability. A sudden surge above $46.50 could completely change the narrative and invalidate the bearish outlook. For now though, the technical picture favors those betting on lower prices, with defined risk levels providing clear entry and exit points for short-term traders.
Usman Salis
