Hyplerliquid’s native token HYPE has seen a strong 20% price increase over the last seven days, reaching a new all-time high (ATH) of $48.10. 

However, despite this surge, the altcoin faces potential reversal risks as broader market conditions suggest a potential correction. Bitcoin’s continued momentum could be the key factor in determining HYPE’s next move.

The Relative Strength Index (RSI) for HYPE currently sits above the 70.0 threshold, indicating overbought conditions. Historically, such a rise in RSI has been followed by short-to-mid-term corrections.

This suggests that the price could be in for a pullback, especially if buying pressure weakens.

When RSI exceeds 70.0, it typically leads to a period of price consolidation or decline, as investors take profits and the market corrects itself. If the overbought conditions persist, HYPE could see a decline, reversing some of its recent gains.

HYPE shares a strong correlation with Bitcoin, with a current correlation coefficient of 0.97. This suggests that HYPE is likely to follow Bitcoin’s price movements closely. Given Bitcoin’s recent bullish trend, HYPE could potentially benefit from BTC’s continued rise. I

The correlation between HYPE and Bitcoin is significant, as BTC’s price fluctuations often impact altcoins, including HYPE. However, if Bitcoin faces a reversal, HYPE is likely to follow suit, experiencing a similar pullback or correction in price.

HYPE’s price is currently trading at $47.94, having risen 20% over the last seven days. The altcoin formed a new ATH at $48.10, extending its bullish pattern this week.

However, the market faces overbought conditions, and historical patterns suggest the possibility of a correction. HYPE might encounter resistance if the overbought conditions lead to profit-taking.

Despite the overbought RSI, if HYPE continues its upward trajectory, it could push past the current ATH of $48.10. A sustained rally, supported by positive broader market conditions, may lead HYPE to reach $50.00 or higher, invalidating the bearish thesis.

If HYPE fails to maintain its current momentum, the altcoin could see a retracement. A drop back to $42.30 would erase a significant portion of the recent gains, as profit-taking pressures mount.

Losing this support level could signal further downside risk, especially if the market shows signs of broader weakness.

The post Hyperliquid’s 20% Rally May Be Short-lived Unless Bitcoin Saves It appeared first on BeInCrypto.

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