Key Takeaways
- HYPE corrected 20%, but signs of stabilization suggest the weekend sell-off may be fading.
- On the 4-hour chart, HYPE has broken above a key resistance, supported by a positive BBP.
- Although the Hyperliquid price has fallen below the 20 EMA, the 50 EMA still offers support.
Seven days ago, HYPE, the native token of the Hyperliquid decentralized exchange, briefly surged past $45.
This marked a new local high and fueled speculation that the rally might have represented a market top. Since then, the token has shed 20% of its value.
However, as the new week begins, the Hyperliquid price appears to be stabilizing, potentially shaking off the effects of the weekend sell-off. Early signs suggest buyers may be stepping back in.
But will bulls sustain this move?
HYPE Stabilizes After Correction
The HYPE/USDT 4-hour chart shows that the cryptocurrency traded in a descending channel between last Monday and Sunday, June 22. But earlier today, the Hyperliquid price broke above the channel’s upper trendline.
This rise suggests that bears may be losing their grip on price action. Interestingly, this shift is validated by the positive reading of the Bull Bear Power (BBP) indicator, which signals that bulls are beginning to regain market control.
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Besides the rise in the BBP, the Relative Strength Index (RSI) also flirts with the neutral line. While it is yet to break the line, the RSI reading indicates that momentum is turning bullish.
If sustained, this could drive HYPE’s price above the resistance at $37.84 while attempting to test the upper level resistance at $42.25.
HYPE Price Analysis: Mixed Signs on the Charts
On the daily chart, HYPE’s price action is currently showing mixed signals, particularly when analyzing its Exponential Moving Averages (EMA).
The token has fallen below the 20-day EMA (blue), suggesting it has dipped beneath a critical support level. However, the 50-day EMA (yellow) still sits below the current price, offering some longer-term support.
Interestingly, the 20 EMA remains above the 50 EMA, typically reflecting a still-intact bullish structure. But that is now under pressure.
This divergence hints at a potential turning point, when the market decides whether to resume the uptrend or move further into correction.
Should buying pressure increase, the Hyperliquid price could break the resistance at $37.34. If that happens, the cryptocurrency could reach a new all-time high of $45.91.
If sustained, this could be the stepping stone that drives HYPE to $50. Conversely, increased selling pressure could send HYPE below the 50 EMA.
If this is true, HYPE might drop below the underlying support, and the altcoin risks declining below $25.
Meanwhile, traders might need to watch out for certain key levels. First, the 0.382 Fibonacci level at $32.01 is one to watch.
Failure to defend this level could lead HYPE’s price into a correctional phase. But if bulls protect it, the cryptocurrency might fail to decline below $30.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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