HYPE, a native of the crypto derivative exchange Hyperliquid, appears to be struggling over the past week and is currently at a critical juncture because of surging investor attention and a bleak outlook triggered by an ongoing downtrend. Today, June 21, 205, the overall digital asset market has been struggling and seeing downturn movements.
Whales to Buy the Dip
In the midst of this challenge, whales have displayed interest and optimism in the altcoin, as disclosed by market analyst Onchain Lens. As reported by the analyst’s latest data, a whale today deposited $10 million in USDC into Hyperliquid.
The trader then put Time-Weighted Average Price (TWAP) orders to purchase HYPE tokens. A TWAP is an automated trading strategy that splits a big order into smaller, executing purchases at regular intervals over a predetermined time. Traders normally go for this method as it reduces the market effect of a big order and buys the assets near their true market average.
This trader’s purchase suggests that whales and long-term investors are returning to the HYPE market and capitalizing on the recent price declines.
HYPE’s Decline
After experiencing robust uptrends for several recent weeks, HYPE is embracing a downtrend. Market users are keenly monitoring if these declines could turn into a deeper consolidation.
HYPE is currently hovering at $34.85, down 7.1% and 17.3% over yesterday and in the past week. According to crypto analyst Trade Tim’s technical analysis, HYPE’s current price trades above a key demand zone.
While the current price movements, around $34, have started attracting whales and long-term buyers, Trader Tim identified the $30.5 and $28.7 area as the zone where investors will show a huge interest. This was the base from which the HYPE price fell before initiating a market uptrend and an ATH in late May.
Trader Tim is convinced that if the HYPE price can decline to this level, this is the region that will introduce a price reversal.
HYPE is currently in the formation of a diamond bottom pattern, a correction pattern that normally happens before a bullish breakout. If the token can successfully move out of the current correction trend, it can trigger a price rise targeting $36.00 and $40.91 soon.
