Remember it's a hostel
While I remind myself that it's a "cheap hostel", I don't think it's an excuse to feel like you're staying at a cheap hostel. In all honesty, if you can manage to overlook everything for the cheap price and disregard the discomfort, you're fine. I could NOT overlook it, €36/$42 a night was too expensive for the conditions we slept in (loud noise, hard bed, smelly towel, loud outside) We skipped one of our nights from it. It's your call. Otherwise, enjoy Valencia!!