Renowned technical and on-chain analyst Ali Martinez has issued a bearish forecast for Hyperliquid (HYPE), predicting a potential drop toward the $13 mark.
Martinez’s analysis, based on technical indicators and blockchain data, suggests that HYPE is breaking down in a way that signals further losses.
Key factors contributing to this outlook include increasing selling pressure and weakening market support, which could accelerate the token’s decline.
Given that Hyperliquid has already faced notable downturns in recent weeks, this prediction has sparked concerns among investors, many of whom are bracing for further price drops.
Hyperliquid (HYPE) Faces Continued Sell-Off as Market Weakens
At present, Hyperliquid (HYPE) is trading at $21.17, reflecting a sharp 11.02% decline in the past 24 hours and a 15.30% drop over the last seven days.
With a circulating supply of 330 million HYPE, its market capitalization now stands at approximately $7.2 billion.
The sustained downtrend highlights a growing lack of confidence among traders, especially as more bearish indicators emerge.
If the selling momentum continues, it could further destabilize market sentiment, making it harder for the token to recover in the short term.
Increased volatility also poses risks for speculative investors, who may seek to exit their positions before further losses materialize.
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Analyst’s Forecast Suggests Nearly 40% Price Decline Ahead
Martinez’s prediction of a $13 price target for HYPE implies a nearly 40% decline from its current value, which could mark a major downturn for the token.
His analysis is supported by multiple bearish signals, including falling trading volume, weakening support levels, and increased sell-offs by major holders.
On-chain data further reveals that large-scale liquidations have been increasing, suggesting that some investors are cutting their losses.
If HYPE reaches the $13 level without strong buying support, it could indicate further instability, making a potential recovery more difficult.
As a result, traders are closely watching critical resistance and support levels to assess the likelihood of a rebound.
Hyperliquid’s Latest Developments and Community Reactions
Despite the bearish sentiment, Hyperliquid has recently introduced several initiatives aimed at expanding its ecosystem.
The launch of HyperEVM, a blockchain upgrade enabling general-purpose programmability, is seen as a major milestone for the project.
Additionally, an airdrop of ANIME tokens has been announced for HYPE stakers as part of a new partnership focused on decentralized anime ecosystems.
Meanwhile, Hyperliquid has addressed concerns about validator selection, reaffirming its fair selection process amid ongoing scrutiny.
However, with reports of $700,000 in losses linked to North Korean hackers and a record-breaking $15 billion in daily trading volume, the project remains at the center of both excitement and controversy.
Investors remain divided on whether these developments can counteract the strong bearish trend currently gripping HYPE’s market performance.
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