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Market Direction

HYPE hits price discovery, eyes correction next

Published: May 23, 2025
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HYPE’s rally has been explosive—up 4x from the bottom and now deep in price discovery. But with funding at 210% and RSI flashing red, a sharp correction may be on the horizon.

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Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


  • HYPE's Funding Rate went hugely positive (annualised out at 210% per year), meaning Longs have now become over-levered, and this is now a frothy environment, which is becoming vulnerable to flush outs.
  • HYPE has been in a clean uptrend without any major pullbacks.
  • Price continued grinding up until it found resistance at the major level of $28.00, rejecting twice. However, on a clean break out, the price has now shot higher.
  • Price is now into price discovery, but the indicators (the RSI) are extremely overbought on the Daily timeframe. This suggests caution currently.
  • The RSI's moving average is also in overbought territory, which suggests that a pullback or a period of consolidation is likely in the short term.
  • If price does see a substantial pullback, the area we'd look to for a meaningful reaction would be the horizontal support at $27.30.

Cryptonary's take

HYPE has had a huge move higher, up 4x off the bottom. At this price, HYPE looks overvalued in the short term, alongside it being very overbought on the indicators.

We would now wait for a sizeable pullback in order to consider potential entry zones. We're not chasing HYPE in the short term, and from a technical viewpoint, it looks very over-extended to the upside. So, for that reason, we chose to remain patient, and we'll look to get entries in the future on a larger pullback.

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  • Next Support: $27.30
  • Next Resistance: $37
  • Direction: Neutral/Bearish
  • Upside Target: $37
  • Downside Target: $27.20

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