Is HYPE entering a bear market after a 10% weekly decline?

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 bearishHYPE 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 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.COINBASE:HYPEUSD 4H Chart" class="wp-image-740269"/>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.