HYPE pullback deepens after bearish signals

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.

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• HYPE put in several back-to-back bearish divergences (higher highs in price and a lower high on the oscillator) in overbought territory. We therefore suggested that price may see a more meaningful pullback, which is what's happened.
• In terms of the RSI and divergences, HYPE is now putting in a hidden bullish divergence (higher low in price, and a lower low in the oscillator). This may help the price bounce back to $39-$40 in the short term.
• There is relatively strong support for HYPE between $32 and $34. We'd expect this to be a relatively strong area to bid.
• Should the $32-$34 area of support be lost, then $28 is the next major horizontal support for HYPE.
• To the upside, the local resistance is at $39.40, with the main horizontal resistance being the all-time high of $45.70.

• Next Support: $32-$34
• Next Resistance: $39.40
• Direction: Bearish
• Upside Target: $39.40
• Downside Target: $32

Cryptonary's take

This pullback for HYPE has been needed in our view, having put in back-to-back bearish divergences in overbought territory, after a long run up, and over 4x up after the lows in early April. Whilst it's possible a small relief rally could be put in, pushing price to $39, our overall view is that HYPE has more room to go lower in the short-term. In terms of buying HYPE, we prefer building a position between $25 and $28, but we may begin between $32 and $34 if structure confirms.