ETF Funding 'Cut Off'...Hyperliquid (HYPE) Plunge Warning Amid Sell Signals

▲ Hyperliquid/AI-generated image ©

Hyperliquid (HYPE) has been weighed down by outflows from spot ETFs and bearish technical signals. With a weekly decline exceeding 8%, the possibility of further correction down to the $50 level has been raised.

According to FXStreet, a foreign exchange and financial media outlet, on July 29 (local time), Hyperliquid continued its downward trend, breaking through key support levels. Weakened institutional investor demand and bearish sentiment in the derivatives market increased price pressure.

SoSoValue data shows that $1.24 million was net outflowed from Hyperliquid spot ETFs listed in the US on the 28th. Fund outflows have continued for four consecutive trading days. Analysis suggests that if the scale of outflows expands, additional downward pressure could intensify.

Selling sentiment was also dominant in the derivatives market. CoinGlass data showed Hyperliquid's long/short ratio at 0.95, close to its lowest level in about a month. A long/short ratio below 1 means more traders are betting on a price decline.

Technical indicators also pointed to the possibility of further correction. The Relative Strength Index (RSI) fell to around 35, and the Moving Average Convergence Divergence (MACD) remained in negative territory. The 200-day exponential moving average (EMA) at $50.80 is considered the primary support level, and if this level breaks, the Fibonacci 61.8% retracement level at $49.75 is the next support.

Even if a rebound occurs, the $57.30 to $57.40 range will be the first resistance level. Subsequently, the price must overcome the 50-day EMA at $61.28 and the Fibonacci 38.2% retracement level at $65.07 to alleviate downward pressure. If even $49.75 is breached, support levels will drop to $38.85 and $24.96.

[Article Key Summary]

-Hyperliquid fell more than 8% on a weekly basis, breaking through key support levels.

-Hyperliquid spot ETFs recorded a net outflow of $1.24 million, marking four consecutive trading days of outflows.

-If the 200-day exponential moving average at $50.80 breaks, the possibility of further correction down to $49.75 increases.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*