The cryptocurrency market has flipped bearish as long traders recorded massive losses over the past 24 hours. Bitcoin has dropped below $80,000 once again, while Ethereum failed to defend the $2,300 resistance level. HYPE, the native coin of the Hyperliquid DEX, is down by 3.6%, making it the second-worst performer among the top 10 cryptocurrencies by market cap. It is currently trading at $38 after closing below the rising trendline earlier this week. Mixed signals from the derivatives markets put a lid on HYPE’s recovery. If the bearish trend persists, HYPE could likely aim for the support level around $37 in the near term. Mixed sentiment keeps HYPE bearish HYPE has been underperforming over the past few days, losing 10% of its value in the last seven days. The bearish performance comes amid mixed sentiment from retail investors. Data obtained from CoinGlass shows mixed signals, keeping the bulls cautious. The long-to-short ratio for HYPE reads 0.70 on Thursday, the lowest level over a month. This ratio, being below one, reflects bearish sentiment in the market, as more traders are betting on the asset’s price to fall. However, the funding rates support a positive sentiment among traders. CoinGlass’ OI-Weighted Funding Rate data for HYPE flipped positive on Wednesday and reads 0.0078% on Thursday. This metric being positive indicates that longs are paying shorts, projecting a bullish sentiment. The combination of these two derivative metrics suggests indecision among HYPE investors and a lack of clear directional bias. This could keep HYPE low, affecting its chances of a sustained recovery. Hyperliquid price forecast Similar to other leading cryptocurrencies, the HYPE/USD 4-hour chart is bearish thanks to its recent poor performance. HYPE’s price broke and closed below the rising trendline earlier this week, losing 7% of its value in the last two days. At the time of writing on Thursday, HYPE is extending the correction, trading below $39. If the bearish trend continues, the bears could push the price below the 200-day Exponential Moving Average (EMA) at $37.88. A daily candle close below the 200-day EMA would pave the way for a deeper correction towards the $36.09 support level in the near term. Currently, Hyperliquid’s momentum indicators suggest a bearish outlook. The Relative Strength Index (RSI) on the 4-hour chart reads 33, approaching the oversold region. Meanwhile, Moving Average Convergence Divergence (MACD) indicators on the same chart showed a bearish crossover on Monday, projecting a negative outlook. However, if the bulls regain control of the market, HYPE could extend its recovery toward the 50-day EMA at $40.11. A daily candle close above this level would allow the bulls to target the recent 4-hour swing high at $42.25. However, the broader market conditions remain bearish, which could affect recovery for HYPE and other leading cryptocurrencies in the near term. The post Is HYPE entering a bear market after a 10% weekly decline? appeared first on Invezz