The Hyperliquid token (Hype) experienced a decrease of almost 6 % in the last 24 hours, despite the recent launch of Hyperevm, an update aimed at expanding the decentralized finance capacities (DEFI) of the platform. This fall in price comes in a context where a positive reaction of the Crypto market was expected following this significant innovation.
Crypto: hyperliquid (hype) drops by 6 % despite the launch of Hyperevm
Hyperevm, which incorporates compatibility with the Ethereum virtual machine (EVM), was designed to provide general programmability to the hyperliquid ecosystem, while retaining the low latency trading experience for which the platform is recognized. Although this update is considered an important step forward to make hyperliquid more attractive for Dapps developers, crypto indicators show signs of weakness, including a significant decrease in momentum.
According to analyzes, Hype price has dropped by 6 % since the launch of Hyperevm, with a 9 % decline over a shorter period. The average directional strength index (ADX) fell to 10.6, signaling a clear lack of direction in the trend, while the relative force index (RSI) is dangerously climbed from the levels of occurrence, falling to 33.1 of 68 In just four days, illustrating a rapid loss of buyer momentum. According to Ryan Lee, chief analyst at Bitget, this drop in hype is due to several factors including “Buy the Rumor, Sell The News”:
After the launch of the Hyperevm, the hyperliquid hypelive token experienced a price drop, probably due to a “buying the rumor, selling the new one”, the market that has already joined the ad. Other factors have contributed to this drop, including the technical limits of hyperevm when it is launched, unsettled expectations concerning its immediate impact and general market dynamics. All of these elements prompted certain investors to sell their positions, which led to the correction of the prices observed.
Future prospects
From a technical point of view, if the selling pressure persists, Hype could test a crucial support at $ 22.5. In the event of a break in this support, the price could drop up to $ 20, or even $ 18.89, a level that the crypto has not seen since the end of January. Conversely, a resumption of the interest of buyers could see Hype straightening towards resistance at $ 27.4, with a thrust potential beyond $ 30 if the Haussier momentum was maintained.
The launch of Hyperevm was therefore welcomed with a certain disappointment by the Crypto market, reflecting an uncertainty as to the immediate impact of this update on the value of hype, due to the concerns expressed by the validators. Investors and traders will have to closely monitor the next price movements and technical indicators to adjust their strategies accordingly.
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