HYPE dropped 16%, and technical signals indicate that the correction may extend, opening up additional short opportunities for short-term traders.
However, some fundamental indicators suggest that HYPE is being undervalued, offering attractive potential for long-term investors to consider buying in at discounted price levels.
MAIN CONTENT
HYPE plummeted by 16%, the technical frame indicates that the adjustment may continue to the $36 mark.
Fundamental indicators like SWPE suggest that HYPE may be undervalued, providing opportunities for long-term investors.
Contrary price signals: Short-term traders may take advantage of short opportunities, but fundamental factors reinforce the potential for an accumulation buy strategy.
What is HYPE?
HYPE is the Token of the Hyperliquid project, actively traded and attracting significant attention from the trading community recently due to its large volatility.
In Q3, HYPE moves in the price range from $36 to $50, creating many swing trading opportunities for active investors. This volatility is a result of strong selling pressure at high price levels.
According to actual data, in mid-August, when the price of HYPE hit $50, sellers dominated, causing the price to drop by 16%. This is a significant correction, creating room for new short orders to be established if the recovery momentum continues to be rejected at this price zone.
How are short-term traders profiting as the price of HYPE adjusts?
Short sellers of HYPE have recorded a profit of 16% as the cryptocurrency's price dropped sharply from the $50 peak to close to the $42 support level.
This decline is prominent on the technical chart, especially when the average price area of $42 is pierced. Currently, selling pressure still dominates, opening up the opportunity to earn an additional 16% profit if the price continues to drop to the $36 mark – the bottom of the recent trading range.
A senior technical analyst from CoinGlass stated: 'Losing the average zone at $42 means the short wave is likely to continue to dominate until reaching the liquidity bottom around $36-37.3.'
CoinGlass, August 2025
In addition to technical factors, macroeconomic volatility also significantly affects short-term trading decisions. If FED Chairman Jerome Powell expresses a 'hawkish' view during the Jackson Hole conference on Friday, market sentiment is likely to remain cautious, increasing downward pressure on lower price areas.
What technical signals indicate that selling pressure is dominant?
Both the RSI and OBV indicators on the 4-hour chart reflect price weakening factors, indicating that sellers are controlling the short-term market. HYPE has currently closed candles below the $42 level.
'As long as the next daily candles continue to close below this level, the short-term advantage still leans towards short sellers,' according to independent analysis on TradingView on August 20, 2025.
TradingView, 20/08/2025
Furthermore, the 30-day liquidation map from CoinGlass confirms strong 'price magnets' at $40 and $37.3. This corresponds to liquidity traps where stop-loss orders will be triggered en masse, increasing the price's downward range if it exceeds the above support levels.
However, there is still a reversal scenario if HYPE can regain the average zone of $42. In that case, the short thesis will be temporarily denied, shifting to a neutral or slightly bullish short-term stance.
Technical Indicator Current Significance Trading Plan RSI & OBV Weak, confirming dominant selling pressure Prioritize short positions if not reversed Average area $42 Loss of support, dropping deep to $36 Wait for confirmation of candle closing below to open new short positions 30-day liquidation map Strong 'price magnets' at $40 - $37.3 below Partially take profit around these areas
Should long-term investors pay attention to HYPE when the price is low?
From a fundamental perspective, HYPE is assessed to be undervalued based on the data from the SWPE indicator (Supply Weighted Profit to Earnings Ratio).
The SWPE indicator is calculated based on the correlation between HYPE's market capitalization and the protocol's revenue. A low SWPE value reflects higher demand and the possibility that HYPE is cheap relative to the project's long-term growth potential. According to Skewga, by August 2025, HYPE's SWPE will only reach 3.19, significantly lower than the industry average.
The low SWPE level suggests that HYPE is being undervalued by the market compared to its inherent financial strength, with significant potential for price recovery if macroeconomic or technical factors reverse.
Skewga Report, 2025
Additionally, HYPE's buyback program (repurchasing Tokens to reduce circulating supply, creating long-term price upward momentum) directly depends on the actual profits of the protocol, further reinforcing the rationale for accumulating at the current price level if investors have a vision of several quarters ahead.
Overall, which strategies might fit each type of investor?
Currently, HYPE shows conflicting signals between short-term technical factors (prioritizing selling, exploiting bearish price waves) and long-term fundamental indicators (accumulation opportunities, waiting for recovery or new growth).
'This is a phase where investors need to clearly consider their holding time objectives. Short-term trading on the bearish wave still has profit margins, while accumulation buy strategies are only suitable if accepting mid-term strong volatility.'
Market analyst Skewga, August 2025
Each investor needs to reassess their risk appetite, profit goals, and capital size when determining strategies: Swing traders can continue to follow short trends toward lower support price areas; long-term investors should focus on accumulating discount areas while closely monitoring reversal signals from macroeconomic factors or policies to optimize entry points.
Frequently Asked Questions
What technical signs indicate that HYPE may continue to adjust?
RSI and OBV are weak, with the price closing below the average $42 area, combined with the liquidation map focusing volume around $40-37.3 confirming dominant selling pressure in the short term.
Why is the SWPE indicator important when evaluating HYPE?
SWPE measures the correlation of market capitalization to protocol revenue; a low value indicates that HYPE is being traded below its real value, increasing the potential for medium to long-term recovery.
What should short-term traders pay attention to when trading HYPE?
It is necessary to observe the average area of $42 and define support price zones around $36-37.3 to optimize entry points and take profits on short positions.
Should short-term traders open additional short positions if HYPE drops to $36?
It is advisable to wait for confirmation signals, prioritizing shorts when the price loses the average mark, paying attention to strong liquidity at $36-37.3 to avoid getting stopped out.
What are the good opportunities for long-term investors with HYPE?
The current price range is considered to be deeply discounted based on the SWPE indicator, suitable for partial accumulation if the medium to long-term goal is accepted with market volatility.
When should one consider reversing the trading strategy for HYPE?
When the price firmly regains the average area of $42 along with reversal signals on a larger timeframe, short-selling strategies should be paused, shifting to observation or expecting recovery.
Source: https://tintucbitcoin.com/short-hyperliquid-du-bao-lai-16/
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