Hyperliquid (HYPE) Sees Signs of Recovery, But Lack of Capital Inflow Remains a Challenge

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HYPE‘s gradual rebound is taking place after a significant downturn, yet the overall market situation hints that this trend might shift abruptly in the near future.

As the cost trends upward, a robust upward movement relies heavily on increased investment and trust from market players, a key element that is yet to materialize.

Hyperliquid Investors’ Support Is Missing

For the first time in a considerable period, HYPE’s Moving Average Convergence Divergence (MACD) has shown a positive crossover signal. This change in MACD is linked to a minor price increase observed over the last few days, suggesting that the bullish trend may be regaining strength and could potentially grow even stronger if the market provides sufficient support.

A strong signal for a possible change in direction occurs when the bullish crossover happens in the Moving Average Convergence Divergence (MACD). This suggests that HYPE could be on the verge of reversing its current trend. If HYPE continues climbing, the regained momentum might entice more investors, boosting their faith in the cryptocurrency’s short-term prospects.

As a crypto investor, I’ve noticed some positive price movements in HYPE recently, but I can’t overlook the fact that the Chaikin Money Flow (CMF) indicator for this coin is consistently below the zero line. This indicates a lack of strong inflows, which suggests that although the market seems to be stabilizing, there’s still a shortage of substantial investor participation. For HYPE to experience sustained growth, we need to see stronger inflows in the near future.

As a crypto investor, I understand that for HYPE to make progress in its recovery, it’s crucial that we infuse more capital into this asset. If there aren’t enough funds flowing in, the current momentum might slow down or even stop, making it tough for HYPE to set a strong upward trend.

HYPE Price Prediction: Feuling The Growth

Over the last several days, HYPE’s value has increased by 8%, suggesting initial indications of a comeback. But, this increase merely recovers around half of the nearly 20% drop that occurred in the prior week. So, there’s still work to be done for a full recovery.

At present, HYPE is maintaining itself above the $19.47 support point. It’s aiming to surpass the $23.20 barrier, turning this resistance into a new support level. This could potentially initiate an uptrend leading towards $29.85. By doing so, it would recover recent losses and strengthen its positive trajectory.

If HYPE doesn’t manage to surpass the $23.20 barrier because of weak investment inflows, there’s a possibility it might retreat to retest the $19.47 support level. Should this support fail, it would undermine the optimistic view, possibly triggering additional drops and eroding investor trust.

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2025-01-14 14:57