Hyperliquid (HYPE) price is trying to recover as market activity stabilizes after a turbulent December. HYPE has rallied from oversold RSI levels, currently at 44.4, indicating a potential consolidation in the short term.
The platform’s daily inflows, which hit a record negative of -$243 million on December 23, have since balanced between -$18 million and $28 million, reflecting a more stable market sentiment. With key resistance at $28.95 and support at $22, the coming days will likely determine whether HYPE can sustain its recovery or face a further pullback.
HYPE RSI has been neutral since December 15
HYPE, one of the biggest airdrops of 2024, is currently showing a Relative Strength Index (RSI) of 44.4, reflecting a significant increase from 32.8 in recent days. A widely used momentum indicator, the RSI measures the speed and magnitude of price movements on a scale of 0 to 100.
Values below 30 indicate oversold conditions, indicating a potential price rebound, while values above 70 indicate overbought conditions, often signaling a potential correction. With an RSI of 44.4, HYPE remains in neutral territory, indicating a balance between buying and selling pressure.
Since December 15, the Hyperliquid RSI has remained in the neutral range, reflecting a lack of strong momentum in either direction. This neutral status suggests that HYPE may continue to consolidate in the short term unless there is a major shift in market sentiment.
While the recent rise in the RSI indicates a slight increase in buying pressure, it is still below the critical threshold of 50, indicating that the bullish momentum is still weak. For HYPE to gain stronger bullish momentum, the RSI must break into a more bullish zone above 50, which could prompt further price action.
Super liquidity flows hit record negative
Hyperliquid reached an impressive record of $181 million in inflows on November 29, 2024, reflecting significant trading activity and investor interest. After this peak, the platform saw volatile inflows, with a continuous streak of positive daily inflows exceeding $70 million between December 11 and December 16.
These flows are measured by the net capital entering or leaving the platform, providing insights into market sentiment and liquidity. Positive flows typically indicate growing interest and confidence, supporting price stability or growth.
However, on December 23, Hyperliquid recorded a sharp outflow of -$243 million, which is a negative sign. Since then, inflows have stabilized, fluctuating between -$18 million and $28 million. This stability suggests that market sentiment is balancing after the large outflows, without strong accumulation or intense selling pressure taking hold.
In the short term, this could mean that HYPE price could consolidate as the market seeks to balance out. An upward move in flows could reignite bullish momentum, while sustained negative flows could signal a potential downside risk.
HYPE Price Prediction: Will the Downtrend Continue?
HYPE price is currently trying to reverse its recent downtrend and regain bullish momentum. If the recovery continues, the price could test the resistance at $28.95, showing that the previous rally was not driven solely by the airdrop.
A successful break above this level could pave the way for further gains. The next targets, $31.40 and $35.20, indicate a stronger bullish phase.
Conversely, if the downtrend continues and selling pressure intensifies, HYPE could test its immediate support at $22.00. If this support fails to hold, the price could drop further to $14.99, which would be a 37% retracement.