$HYPE moved smoothly from 62.97 down to 57.11, and then stayed sideways for two days between 57 and 60. It doesn’t look like anything happened, but the trading volume has been steadily shrinking. After 3.37 million lots and 3.74 million lots, the most recent candles have all shrunk to around 0.8 to 1.2 million lots. The market is waiting for direction.
HYPE is an on-chain perpetual contract platform, using a hybrid model that combines CEX and DEX. When on-chain trading volume is high, it benefits; when the on-chain ecosystem cools down, it cools down too. Now the whole on-chain derivatives market is weak, so HYPE naturally isn’t showing much.
Signals on the chart.
62.97 is the recent high, appearing at 20:00 on July 20. After that, the highs kept stepping down: 62.97, 61.19, 60.07, 59.53, 59.10. Each rebound can’t get back up. The lows also keep moving lower, from 60.07 to 57.37 to 57.11. The 4H descending channel has been running for four days already, with price staying pressured near the lower band. Over the past three days, price has been ranging narrowly between 57.17 and 59.10, with an amplitude of only about $2. This kind of converging pattern usually suggests a breakout is near.
Market sentiment.
Funding rate is 0.005%. It’s positive, but very low. Both longs and shorts are watching and waiting. HYPE, as the token of an on-chain derivatives platform, is closely tied to derivatives market sentiment. Since the derivatives market funding rate is currently low, it suggests leveraged capital is contracting. Without leverage pushing, it’s hard for price to make big moves.
Whale activity.
The 3.37 million-lot heavy-volume bearish candle at 04:00 on July 22—selling from 60.12 down to 57.93, a drop of 2.64%—was the biggest single-candle volume in this period. The main force dumped here once to test the bids/support below. Then the 3.74 million-lot heavy-volume bullish candle at 16:00 on July 22 rallied from 58.07 up to 59.93, and then retraced. These two candles total 7.11 million lots, indicating that within the 57 to 60 range, large players were exchanging positions/accumulating. Some people sold, and others took the other side. But then the trading volume dropped sharply, suggesting the exchange is already done and price has entered a new balance zone.
Volume-price structure.
During the drop from 62.97, heavy volume concentrated on July 21 to July 22. After that, during the rebound phase, volume clearly shrank. The recent candles’ volume has been around 0.8 to 1.2 million lots, only about 1/30 of the volume during the breakout period. Low-volume consolidation means the market is waiting for a new catalyst. Direction is uncertain, but given that the prior move down happened on high volume while the rebound happened on low volume, the structure dominated by bears hasn’t changed.
Candlestick details.
The bearish candle at 16:00 on July 23, which was dumped from 59.51 down to 57.60, has a real body of about $1.9 and almost no upper wick. It shows that the sell pressure dominated from the open to the close. Then at 20:00 it probed further to 57.11, leaving a lower wick. Next, at 00:00 on July 24 it bounced to 58.37; at 04:00 it reached 59.04; at 08:00 it went back to 58.26. Three consecutive small-bodied candles consolidating with reduced volume around 58—this is a typical converging triangle’s terminal phase, with the upper trendline at 59.10 and the lower trendline at 57.17, and the amplitude getting smaller. A turning point is near.
Nini’s plan.
Neutral.
Current price: 58.41. If it breaks above 59.50 on increased volume and holds, go long with a target of 61.00 and a stop-loss at 57.00. If it breaks below 57.00, go short with a target of 55.00 and a stop-loss at 59.50. Don’t open a trade in the middle of the range. Wait until the direction becomes clear before acting.
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