HYPE rally stalls, bearish setup forming

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 has pulled back from the all-time highs of $40.00. $40.00 remains the major horizontal resistance for the price going forward.
• Price has now found some local support at the prior highs of $31.00.
• Price is now forming a bear flag that would have a breakdown target of $28.00.
• Should price break below $28.00, although we think it can hold there initially, then $24.70 would be the next major horizontal support.
• The RSI has pulled back from overbought territory, however, its moving average is still overbought, which would suggest that this needs more time to come down/reset.

• Next Support: $28.00
• Next Resistance: $40.00
• Direction: Bearish
• Upside Target: $40.00
• Downside Target: $23.70

Cryptonary's take

HYPE has had a phenomenal run, however, we have now seen a small pullback, and we do expect this to be the start of a new downtrend over the medium term for HYPE. Our expectation is that HYPE will break down from its bear flag pattern and the price will revisit $28.00 in the short term. Ideally, we'd like to see HYPE hold that $28.00 support and build a floor for the price there. We will reassess this, assuming we're right and price revisits $28.00 in the short term.

In terms of positioning, we're remaining patient, and we're not looking to buy this price pullback just yet. We'll reassess upon a retest of $28.00, although it's likely that our buying zone will be sub $23.