Experts Reveal Buy Zone for HYPE as Traders Fear a Potential $107M Sell-off

Core Insights - Hyperliquid's HYPE token experienced a 2% decline on September 16 due to concerns over a potential $107 million sell-off by a whale investor [1] - The whale, who initially staked 2 million HYPE tokens, has begun moving funds after a significant profit, raising fears of a large sell-off [2] - Current trading price of HYPE is around $52.6, indicating a paper profit of nearly $89.8 million for the whale [2] Market Sentiment - Analysts indicate a growing bearish sentiment in the short term, highlighted by another major investor opening a 3x leveraged short position on 303,901 HYPE, valued at approximately $16 million [2] - The Relative Strength Index (RSI) is currently in the neutral zone, suggesting a balance between bullish and bearish forces [4] Technical Analysis - HYPE is trading near the midpoint of a rising parallel channel established since late July, with key support levels identified at $50 and $47 for potential buying opportunities [3] - The MACD line is narrowing towards the signal line, indicating weakening bullish momentum, with a bearish crossover potentially confirming a short-term downside [5] - If the MACD resumes upward movement, resistance levels are expected near $55, with a potential price surge towards $60, the upper boundary of the trending channel [5] Future Outlook - The ongoing price downturn is perceived by some as an attractive entry point ahead of a potential rally, especially with Hyperliquid's upcoming launch of the USDH stablecoin, which is anticipated to enhance long-term confidence in HYPE's price [4]