The cryptocurrency market is facing uncertainty, with a spotlight on Hyperliquid (HYPE). After a strong rally, HYPE is now testing a critical resistance level. What lies ahead for Hyperliquid amidst these challenging times ?
From a technical standpoint, the bullish progression of Hyperliquid appears to have reached a point of exhaustion. The price is now hitting a resistance zone around $41.55, where several significant technical elements converge :
Given this technical configuration, analysts are identifying the beginnings of an ABC-type correction structure. This pattern, characteristic of corrective movements, suggests that the bullish impulsive movement has reached its conclusion, giving way to a retracement phase.
If this hypothesis is confirmed, Hyperliquid could retrace part of its recent gains, with a first support target around $26.53. This level corresponds to both a historical support, a strong liquidity zone, and the next Fibonacci level below the current price.
Although this correction might be perceived as a sign of weakness, it would actually represent a healthy movement, allowing momentum indicators to reset and offering an accumulation opportunity for investors. More importantly, it could liquidate the support at $30, below which numerous long position stop losses are placed.
For traders, the key will be to carefully monitor price behavior around the $41.55 zone. If buyers fail to recapture it convincingly with substantial volume, the path will be open for a pullback toward $26.53.
HYPE will also need to move above its Ichimoku cloud by breaking through the resistance at $40.5, which would be a good start.
Conversely, a bullish breakthrough above this critical level could revive momentum and pave the way for a new upward phase. In this scenario, investors should monitor the next resistance levels to identify new entry opportunities.
In conclusion, Hyperliquid’s situation perfectly illustrates the current cryptocurrency market dynamics. Between uncertainties and consolidation phases, seasoned investors will know how to capitalize on these movements to strengthen their long-term positions.
To try your luck and purchase this promising DeFi token, here’s a guide to obtaining it easily on BitMart :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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