Hyperliquid (HYPE) Oversold and Ready to Rall: Perfect Buy Opportunity

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear cycles, and I must admit, the crypto market has always kept me on my toes. With a background in traditional finance and a passion for digital assets, I find myself intrigued by the unique dynamics of the cryptosphere.

In this analysis, I am particularly drawn to Hyperliquid ($HYPE). The token seems to be struggling at critical levels, with its current pullback testing the crucial demand zone between $21.84 and $22.78. However, the bullish sentiment surrounding whale activity gives me a reason to pause and take notice.

The recent accumulation by notable whales, such as 0x007, 0x721, and 0x602, suggests that they see value in Hyperliquid at its current price levels. It’s important to remember that whales are often early adopters and shrewd investors who have a significant impact on market movements.

The rising number of high-net-worth individuals buying Hyperliquid hints at a potential reversal rally ahead, which aligns with the bullish divergence I’ve observed in the exchange metrics. The total user count is nearing 300,000, the volume is approaching $600 billion, and the derivative open interest is showing signs of a V-shaped reversal.

That being said, it’s essential to remember that the cryptomarket can be unpredictable, and past performance is no guarantee of future results. As always, do your own research and invest wisely.

On a lighter note, I couldn’t help but chuckle when I saw the whale 0x772 depositing an entirety of USDC to Hyperliquid in just 40 minutes – talk about quick decisions! I guess some things never change, even in the fast-paced world of cryptocurrencies.

As a seasoned cryptocurrency investor with over a decade of experience in the market, I have witnessed numerous bull and bear runs that have shaped my investment strategies. Currently, the crypto market maintains a staggering $3.4 trillion valuation, but the Fear and Greed Index stands at 57, indicating a neutral sentiment. While this may seem like a red flag to some, I see it as a sign of caution rather than a bearish indicator.

Looking at Hyperliquid ($22.94), its 24h volatility of 11.7% and market cap of $7.71 billion, I can’t help but notice that it is struggling to maintain critical levels. As someone who has seen many altcoins rise and fall, I understand the importance of patience when investing in volatile assets like Hyperliquid.

Despite the current neutral sentiment, I believe there are opportunities for a bullish recovery in January 2025. However, it’s essential to approach these investments with caution and a well-researched strategy, as market conditions can change rapidly. In my experience, the most successful investors are those who stay disciplined and adapt to market changes while keeping their long-term goals in mind.

But the increasing attention from whales towards the token suggests a potential massive increase in value by late 2025, possibly leading to significant profits.

Hyperliquid Price Analysis

On the 4-hour chart, the HYPE token’s price movement appears to form a downward channel trend. Following an impressive rally in December that led to a 104% price increase, there has been a retracement in this bearish pattern.

As an analyst, I’m observing that we’re now in a pullback phase, testing a significant demand area that stretches from approximately $21.84 to $22.78. This potential dip also hints at a possible break of the downward channel pattern, as the last 4-hour candle indicates a decline of about 6.64%.

Additionally, this has boosted the likelihood of a downward crossover occurring between the 50 and 100 Exponential Moving Average lines. However, the 4-hour Relative Strength Index (RSI) line still indicates a bullish divergence at lower levels, despite the overall bearish price trend. This suggests that there might be an upcoming bullish reversal as the broader market starts to show signs of stabilization.

If the market shows a positive recovery towards the resistance trendline close to the 23.60% Fibonacci level, it could potentially reach the $26.29 peak. Looking optimistically, further price objectives lie at $29.49 and $34.48.

Looking ahead to potential price targets in late 2025, Fibonacci levels based on trend suggest possible highs at $40 and $51.30. Conversely, if the price falls below $21.00, it may encounter resistance at the support level of $18.52.

Whale Scoop HYPE amid Short-term Pullback

Although a temporary dip in price is making the chart appear negative for Hyperliquid, the conviction of major investors, or ‘whales’, in Hyperliquid remains unwavering. In fact, over the last 24 hours, Hyperliquid managed to regain its position among the top 20 largest tokens by market capitalization from PEPE. However, this dip has caused it to slip back below PEPE once more.

During the brief surge, numerous whales adopted optimistic stances in Hyperliquid. Specifically, whale 0x007 transferred and invested 3.96 million USDC to amass approximately 151,277 hype tokens. This transaction took place at an average price of around $26.19.

Today, whales are piling up on HYPE tokens as Hyperliquid regains its position among the top 20 largest cryptocurrencies by market capitalization, pushing out PEPE!

1/ Whale “0x007” bridged and spent 3.96M $USDC to buy 151,277 $HYPE at ~$26.19, 9 hours ago.

2/ Whale “0x721” spent 2.6M $USDC to buy 99,546 $HYPE at…

— Spot On Chain (@spotonchain) January 2, 2025

Additionally, it’s noted that a whale, specifically one identified as 0x721, invested approximately 2.6 million USDC to acquire 99,546 Hype tokens. This transaction took place at an average cost of around $26.14 per token, thereby boosting the total number of Hype tokens held by this whale to 107,198 units. The current value of these tokens is about 2.76 million USDC, while their all-time profit on Hyperliquid stands at a significant 3.32 million USDC.

0x602, the whale, transferred approximately 2 million USDC and expended roughly $911,000 to acquire around 37,017 Hype Tokens. This transaction took place with each token costing an average of about $24.60.

In the past 40 minutes, the wallet identified as 0x772 moved approximately 1.352 million USDC from its Binance Hot Wallet to a bridge for buying HYPE tokens. This transferred amount was then deposited in its entirety into Hyperliquid.

As 0x772 persists in making trades around approximately $22, an increasing interest among wealthy investors in purchasing Hyperliquid could signal an impending bullish trend.

Hyperliquid Metrics Reveal Strong Fundamentals

As a seasoned investor and trader with over two decades of experience in the financial markets, I’ve seen numerous ups and downs, but the current performance of Hyperliquid exchange has caught my attention. Despite witnessing a temporary dip, the platform’s metrics show an encouraging trajectory. The rapid growth in user count, nearing 300,000 users, is a testament to its popularity and appeal among traders. Moreover, the total trading volume approaching $600 billion suggests that this platform is not just another flash-in-the-pan but a serious player in the crypto market. I’m optimistic about Hyperliquid’s potential for future growth and success, given my past experience with similar platforms that started strong and went on to revolutionize the industry.

As more users join and deposit funds increase significantly, we’re almost at the $150 billion mark in total deposits. At the moment, the derivatives segment shows a combined position value of about $3.54 billion, suggesting a strong turnaround in a ‘V’ shape pattern.

Hyperliquid’s substantial growth in whale holdings, expanding user community, and outstanding exchange statistics, even amid a temporary dip, indicate a positive long-term perspective. The token appears poised for a bullish turnaround as it approaches crucial support zones, with potential price goals of $29.49, $34.48, and further ahead in 2025.

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2025-01-03 13:41