HYPE Price Downtrend Deepens As Funding Rate Collapses To 6-Month Low

Core Insights - Hyperliquid (HYPE) is experiencing strong selling pressure, with a bearish price trend following a recent market correction [1] - The funding rate for Hyperliquid has dropped to a six-month low, indicating a significant rise in bearish sentiment among traders [2] - Futures traders are predominantly betting against HYPE, reflecting a lack of confidence in a near-term recovery [3] Market Indicators - The Moving Average Convergence Divergence (MACD) indicator showed potential signs of a bullish crossover, but selling momentum has pushed it deeper into negative territory [5] - The divergence between the MACD lines suggests further downside potential unless there is a meaningful shift in momentum favoring buyers [6] Price Analysis - HYPE is currently trading at $38.8, just below the critical support level of $38.9, indicating a potential for further decline [7] - If HYPE fails to hold above $38.9, it could drop to the $36.7 support level, with further declines possible to $35.7 if bearish sentiment continues [7] - Conversely, if HYPE can maintain above $38.9 and attract buying activity, it may rise past $40.2 and challenge the downtrend, with a breakout above $43.5 potentially signaling a trend reversal [8]