HYPE recently experienced a textbook-level market paradox: the price fell 11% in a single day, yet the RSI indicator soared to an extreme overbought zone of 79.5.

This phenomenon of "price moving down while indicators move up" often indicates that market sentiment has deviated from the trajectory of the price itself.

First, let's look at the liquidations data. The long liquidation scale reached as high as 15.64 million USD, while the short liquidation was only 200,000 USD—what does this mean? The downward pressure mainly comes from the panic selling of the longs themselves, rather than the active suppression by the shorts. When panic sentiment is released to the extreme, the market often welcomes a technical correction.

The abnormal performance of the RSI indicator is more intriguing. Normally, a price fall is accompanied by a drop in the RSI, but now the RSI remains in the Overbought zone, indicating a serious divergence between short-term price momentum and the medium-term trend. This "indicator gap" has historically often become a breeding ground for rebounds.

According to on-chain data, some whale addresses have increased their positions during the price pullback. Smart money is taking advantage of market panic to position themselves at lower levels.

On the operational level, two approaches can be referred to:

Aggressive strategy: Enter with a small position around $31 for a tentative attempt, aiming for a technical rebound. Target the short-term resistance at $32.8, with an advanced target of $33.65.

Steady strategy: Wait for the price to effectively break through 31.28 USD and stabilize, then confirm the trend reversal before following up.

Risk control must be clear: $28.9 is the key support level. Falling below this price indicates that the technical divergence has failed, and decisive stop-loss action is required.

The most fascinating aspect of the market lies in its occasional state of "schizophrenia." The trader's task is to find the path to order amidst the chaos.