• HYPE ($32.64) is currently trading within a descending channel, with the potential to fall further depending on how it reacts at its current level.
• Key indicators and Total Value Locked (TVL) remain bearish. However, the RSI is gradually hinting that sell pressure may be easing.

Hyperliquid [HYPE] ranks among the top losers in the market, dipping 16.57%, over the past 24 hours. This decline has reduced its monthly gains to 64.93%.

The token’s movement at its current price level will determine whether it stages a significant rally or faces further losses as market sentiment weakens.

Will HYPE yield positively from this pattern?

Technical analysis of HYPE’s 4-hour chart reveals that the asset is trading within a descending channel, characterized by lower highs and lower lows. Investors continue to accumulate in anticipation of an upward move.

A bullish breakout from this pattern occurs when the price breaches the upper resistance line of the channel, potentially reaching its peak of $35.7.

At the time of writing, HYPE is trading within a support zone at $21.59, which has previously acted as a bullish catalyst on three occasions. If this support provides the required momentum, HYPE could rebound and gain 65.44%, reaching the menti...