Hyperliquid Price Prediction – HYPE Moves Into Consolidation Amid Mixed Market Sentiment

Highlights:

• The Hyperliquid price has slipped 5% to trade at $29 today.
• The derivatives market shows mixed sentiment as traders await a clearer directional move.
• HYPE moves into consolidation as bulls target $37 according to the technical picture. 

At the time of writing on Tuesday, the Hyperliquid (HYPE) price is consolidating at $29, indicating the market is unsure of its direction and waiting for a stronger signal. This ambivalent mood is also justified by the derivatives data, as short bets are increasing and funding rates have flipped positive.

On Tuesday, CoinGlass’ long-to-short ratio of HYPE sits at 0.81. This is a ratio that is lower than one, indicating bearishness in the market, with more traders betting on a decrease in the price of the asset. 

On the other hand, the rates of funding facilitate a bullish thesis. The data of CoinGlass OI-Weighted Funding Rates indicate that the number of traders who bet upon the time when the price of HYPE will fall even further is less than those who believe that the price will go up.

The metric turned to a positive rate on Saturday and is at the moment at 0.0072% on Tuesday, which means that longs are paying shorts. In the past, the price of Hyperliquid has soared when the funding rates have reversed from a negative to a positive position.

HYPE Moves Into Consolidation as Bulls Eye $37

The Hyperliquid price remains under pressure after failing to hold above the $37 region. On the daily chart, price action now shows a consolidation move, a pattern that often signals a potential rally if the bulls build momentum. HYPE is currently trading around $29, sitting just above a key support zone that could decide the next major move. The 50-day SMA at $26 could decide which is the next move in the HYPE market, as the immediate resistance aligns with the 200-day SMA at $37.

The $26 area is now acting as an important support level. This zone serves as a decisive point, making it technically significant. A daily close below this level would strengthen the bearish case and could open the door for a deeper decline. In such a case, a drop towards the $23-$19 lows could be imminent.

On the other hand, based on the consolidation structure, if the $26 support zone holds firm, a clear breakout towards $37 would confirm a bullish rally. The Relative Strength Index (RSI) is currently around 50.58, aligning with the neutral zone. This shows that buyers and sellers are in a tug-of-war, as they both strive to dominate the market. 

Overall, while HYPE is consolidating, the neutral RSI suggests a breakout in either direction. On the upside, the Hyperliquid price would need to hold the $26 support level first to signal short-term relief. A stronger recovery would require a break above the $37 resistance area, where previous selling pressure was heavy. Without such a move, any bounce is likely to remain corrective, causing further downside towards the $23-$19 October lows.