HYPE’s next target: $17.30 breakout?

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:

• Disappointing to see HYPE break down like it has. We called the bear flag pattern correctly, and since the price has drawn down substantially.
• At the beginning of the week, we thought HYPE might be able to hold the $14.50 level, but unfortunately, the price wasn't able to.
• Price is now trying to form a bottom at $12.00, and so far, the response has been more positive.
• We're seeing the RSI come out of oversold territory and breach up into its moving average (it'll need to claim and sit comfortably above it) to see further upside for price.
• On the RSI, note there haven't been any bullish divergences put in yet, so any new price lows might create that. Something to watch.
• $14.50 is now potentially going to be a local horizontal resistance. If the price can be claimed above that level, then that'll open the door for a move back to $17.30. However, we're sceptical of a move back to $17.30 in the short term.

• Next Support: $12.00
• Next Resistance: $14.50
• Direction: Neutral
• Upside Target: $17.30
• Downside Target: $9.00

Cryptonary's take

It seemed many market participants were hiding out in HYPE in the hope that it'd hold up price-wise because of the buybacks. However, when price lost key levels and general market sentiment was poor, sellers came in.

Price has now fallen to fresh lows, but it's very oversold, indicating that a bounce might be possible in the immediate term. However, a bounce isn't something we'd like to play as it's trading against the wider trend.

Also, if the price does put in a bounce, we're sceptical that it'll get a meaningful upside, hence therefore making the potential bounce less of an attractive play.