Cryptocurrencies are gearing up for another turbulent day with the impending release of a new U.S. inflation report. Additionally, volatility is expected to surge on Friday with Japan’s interest rate decision. This period of uncertainty precedes a holiday week, during which two significant negative developments are anticipated to impact the crypto market until January 15th. With several reasons justifying further declines, what is the outlook for HYPE Coin?
HYPE Coin and the Evolution of Next-Gen DEX
For long-term investors, Hyperliquid (HYPE) is emerging as a popular choice, leading the new generation of decentralized exchanges (DEX) alongside Aster. Following the collapse of FTX, interest in decentralized finance (DeFi) is expected to increase exponentially in the next bull market, necessitating improvements in user experience. By the end of 2022, platforms like Hyperliquid and Aster successfully transformed into DeFi spaces that resemble centralized exchanges in appearance.
Traditional DeFi platforms were often too complex for novice investors. The new generation platforms have bridged this gap, enabling even those new to cryptocurrency to navigate decentralized finance effortlessly. This has resulted in significant interest in futures trading, with investors appreciating the control wallet-based decentralized platforms offer, akin to centralized exchanges.
Due to these factors, Hyperliquid may remain relevant for a long time, unless more advanced DEX platforms emerge, causing Hyperliquid and Aster to lose popularity. However, CZ’s open support for Aster suggests that these two platforms may not encounter formidable competition in the medium term. While the sentiment of short and medium-term investors in cryptocurrencies may be variable, HYPE Coin holds potential for long-term growth. Investors previously competed to purchase HYPE Coin above $35 and now find opportunities to buy at lower prices, yet fear seems to hold them back.
HYPE Coin Investment Strategy
Altcoin Sherpa, a pseudonymous analyst, offers insights to those interested in HYPE Coin while seeking different perspectives in technical analysis. Sherpa discusses two trading strategies under consideration. Despite being an experienced trader, Sherpa emphasizes the importance of developing personal market perspectives rather than merely replicating strategies.
Sherpa outlines two avenues:
- First Path: A long-term movement around the $27-28 region. Sherpa hopes for stability in this area and a steady Bitcoin
$90,533. Although recent movements have been unproductive, Sherpa anticipates recovery soon.
$
- Second Path: A broader fluctuation around the $23-20 range. Sherpa notes the presence of significant liquidity in this region and remains uncertain if these levels will be reached, but recognizes potential market interest. Sherpa continues to consider HyperLiquid as a leading crypto project worthy of investment.
The analyst expresses uncertainty regarding the timing of reaching these lower levels, linking it to Bitcoin’s performance.
“Bottom formations take time and the last one took relatively a few weeks (returning to $9). Some peculiar price movements are expected during Lighter’s TGE, given their resemblances. I’ll be observing in general.” — Sherpa
