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Hyperliquid token has experienced almost 6 %in the last 24 hours, despite the recent launch of Hyperevm, an update aimed at expanding decentralized financial capacities (defi) platform. This price drop comes in the context, when this significant innovation was expected to have a positive reaction to the market crypto.
Crypto: Hyperliquide (Hype) will drop by 6 % despite Hyperevm
Hyperevm, which involves compatibility with the Ethereum virtual machine (EVM), has been designed to provide general programmability of hyperliquid ecosystem, while maintaining the experience of low latency for which the platform is recognized. Although this update is considered an important step forward to make hyperliquide more attractive to DAPPS developers, crypto indicators show signs of weakness, including a significant decline in momentum.
According to the analysis, the price of Hype has fallen by 6 % since Hyperevm launched, with a 9 % drop per shorter period. The average directional strength index (ADX) dropped 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 and dropped to 33.1 out of 68 in just four days, illustrated a rapid loss the mobility of the buyer. According to Ryan Lee, the main analyst of Bitget, this decline in Humba is caused by several factors, including “buy reputation, sell messages”:
After Hyperevm started, a hyperliquid token experienced a decrease in price, probably because of “reputation purchase, new selling”, a market that has already joined advertising. Other factors, including the technical limits of Hyperevm, have contributed to this decline, when it is launched, the unpredictable expectations of its immediate impact and general market dynamics. All these elements have forced certain investors to sell their positions, which led to the repair of the observed prices.
Future prospects
From a technical point of view, if the sales pressure persists, hype could test key support for $ 22.5. In the event of a break in this support, the price could drop to $ 20 or even $ 18.89, a level that the crypt has not seen since the end of January. On the contrary, the restoration of buyers’ interest could see how the hype straightens to resistance to $ 27.4, with a tensile potential over $ 30, if the momentum has been maintained.
Hyperevm initiation has therefore been welcomed with a certain disappointment of the crypto market, reflecting the uncertainty in terms of the immediate impact of this update on the value of hype, due to concerns expressed by the validates. Investors and traders will have to carefully monitor other price movements and technical indicators to adjust their strategies appropriately.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.