Hyperliquid slides below $38: THIS points toward $31 retest
Key Takeaways
Hyperliquid has fallen again into the vary that stretched again to late Might, and the failure to defend $38 meant that additional value losses have been possible.
Hyperliquid [HYPE] failed to interrupt out previous the $41 vary excessive in mid-July and has fallen again into the vary that it has traded inside since late Might.
For long-term traders, a transfer to the vary lows would possible supply a great shopping for alternative.
Supply: HYPE/USDT on TradingView
HYPE was beneath the mid-range stage at $37.9. It seemed to be retesting the $38 area as resistance on the time of writing. The bearish case was made stronger by the OBV’s descent over the previous two weeks.
This indicated regular promoting stress on HYPE, which led to the token’s rejection at $49.
The retracement into the vary was an early signal that HYPE would go decrease, and this has come true. Now, the autumn beneath the mid-range stage was one other signal of bearish continuation.
HYPE merchants, brace for volatility
The $111k-$112k, the place Bitcoin [BTC] was buying and selling in latest hours, was a short-term assist zone.
Therefore, a Bitcoin value bounce was attainable, which in flip could lead on Hyperliquid token costs to bounce again above the mid-range resistance.
Merchants ought to brace for volatility, however the pattern was bearish. Subsequently, their bearish outlook could be justified, and a transfer to the vary low at $31 remained possible.
Supply: HYPE/USDT on TradingView
The trail to the vary low may not be a straight like downward. The 4-hour chart revealed a bullish divergence on the RSI, marked in orange.
This indicated a possible value bounce to $39-$40. Brief sellers must watch out for such a bounce.
The H4 market construction was bearish, and the $38 area has been established as resistance over the previous 24 hours. A bearish outlook could be possible till HYPE bulls flip $38 to assist and drive costs above $39.2.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
