$1.74M quietly moves into HYPE as search volume grows – Details and what next?

• HYPE, at press time, was the most searched cryptocurrency in the market over the past 24 hours
• Several sentiment indicators and on-chain metrics hinted at a bullish outcome for the asset

HYPE has seen turbulent market movement lately, with the same declining by 30% over the past month. In fact, this trend intensified over the last 24 hours as the altcoin lost 19.86% of its value, pushing its price down to $15.97.

However, the asset could be on the verge of a reversal now. Especially since bullish indicators have been beginning to emerge lately, with each one of them supporting a potential market rally.

Liquidity flow begins as HYPE search heightens

According to CoinGecko, HYPE has remained the most searched token in the market over the last 24 hours, ahead of Berachain (BERA), Ethereum (ETH), and Sui (SUI).

Whenever this happens, it often alludes to growing interest from new market participants, Likely from those who do not yet hold the token, as they assess whether it presents a good buying opportunity or not. 

Source: CoinGecko

According to AMBCrypto’s analysis, HYPE has now entered the buy region on the chart. This can be marked by the Fibonacci support level, with the Relative Strength Index (RSI) approaching the oversold zone.

At the time of writing, HYPE was trading close to the support level on the chart, marked by the Fibonacci support line at $16.072. This could prompt a slight pullback, while possibly setting up a major move to the upside.

AMBCrypto’s analysis also found that HYPE could breach the Fibonacci support level as the RSI heads further into the oversold region.

Source: TradingView

The Relative Strength Index measures the speed and magnitude of price changes to identify overbought (above 70) or oversold conditions (below 30). With a press time reading of 30.67, HYPE’s price could drop lower. However, historically, this level has often led to a major price rebound, potentially signaling a trend reversal.

The ongoing movement of liquidity means that buyers are beginning to step in. For instance – The total value locked (TVL), which tracks liquidity entering and exiting the protocol, has risen by $1.74 million in the Last 24 hours, climbing from $638.28 million to $640.02 million.

This liquidity inflow, despite the broader market downturn, is often a sign of early accumulation ahead of a major rally that could take HYPE back to $35.

More bullish confluence exists

In the derivatives market, several indicators pointed to a bullish case for HYPE, including a rising funding rate and a positive OI-weighted funding rate. On the contrary, the Open Interest declined on the charts. 

At the time of writing, HYPE’s funding rate stood at 0.0098%, one of the highest among cryptocurrencies. This indicated that buyers have been paying a premium to maintain their positions, ensuring minimal price disparity between spot and futures prices.

Source: Coinglass

This bullish outlook seemed to be in line with the altcoin’s OI-weighted sentiment, which compares an asset’s Open Interest and funding rate to determine price direction. The metric was in positive territory at 0.0472%, slightly down from its previous high.

This slight decline may be linked to unsettled derivative contracts, which saw an 8.37% drop in the last 24 hours as the market moved largely against bullish traders.

To put it simply, sentiment is gradually turning bullish. If these positive signals persist, HYPE could see a major price swing to the upside.