Crypto: Why Hasn't Hyperliquid Taken Off After the HyperEVM Launch?

The Hyperliquid token (HYPE) experienced a decline of nearly 6% over the last 24 hours, despite the recent launch of HyperEVM, an update aimed at expanding the decentralized finance (DeFi) capabilities of the platform. This price drop occurs in a context where a positive market reaction to this significant innovation was expected.

Crypto: Hyperliquid (HYPE) Drops 6% Despite the Launch of HyperEVM

HyperEVM, which integrates compatibility with the Ethereum Virtual Machine (EVM), was designed to bring general programmability to the Hyperliquid ecosystem while maintaining the low-latency trading experience for which the platform is known. Although this update is seen as an important step forward in making Hyperliquid more attractive to dApp developers, crypto indicators show signs of weakness, particularly a notable reduction in momentum.

According to analyses, the price of HYPE has fallen by 6% since the launch of HyperEVM, with a decrease of 9% over a shorter period. The Average Directional Index (ADX) has dropped to 10.6, indicating a lack of clear direction in the trend, while the relative strength index (RSI) is dangerously approaching oversold levels, dropping to 33.1 from 68 in just four days, illustrating a rapid loss of buying momentum.

This drop in HYPE can be attributed to several factors, including the “buy the rumor, sell the news” approach, as the market had already priced in the announcement before the update. In addition, the technical limitations of HyperEVM and unmet expectations regarding its immediate impact, certainly prompted investors to sell their positions, resulting in the observed price correction.

Future Perspectives

From a technical standpoint, if selling pressure persists, HYPE could test a crucial support at $22.5. Should this support break, the price could fall to $20 or even $18.89, a level that the crypto has not seen since late January. Conversely, a resurgence of buying interest could see HYPE recover towards resistance at $27.4, with potential for a push beyond $30 if bullish momentum is maintained.

The launch of HyperEVM has thus been met with some disappointment by the crypto market, reflecting uncertainty regarding the immediate impact of this update on the value of HYPE. Investors and traders will need to closely monitor upcoming price movements and technical indicators to adjust their strategies accordingly.