Peter Smith
⬤ HYPE is sitting at a critical juncture after a steep sell-off, now forming what looks like a textbook bearish flag on the 4-hour chart. The token is hovering around 39.3 USDT—a support level that's become make-or-break. The chart shows a tight, rising channel with price consistently failing to break higher, setting up what could be another move down if buyers don't step in.
⬤ Beyond the technicals, the broader crypto market is dealing with regulatory headwinds. Proposed tax reforms have some in the industry worried about added financial strain on smaller firms, potential bankruptcies, and talent moving to friendlier jurisdictions. That kind of uncertainty doesn't help speculative assets like HYPE, making technical support levels even more important right now.
⬤ The bearish flag tells a straightforward story: after the initial drop, HYPE paused to consolidate—but this type of pattern usually leads to continuation, not reversal. If the token breaks below the 39.0–39.3 USDT zone, the measured move points toward a target near 26 USDT. The chart lays it out clearly, showing a potential path lower that matches the height of the original sell-off.
⬤ For traders, this is a pivotal moment. A clean break below support would confirm the bearish setup and likely accelerate selling. In a market already rattled by policy uncertainty and shaky risk appetite, how HYPE holds up here could determine whether it stabilizes—or heads significantly lower in the days ahead.
Peter Smith
