HYPE’s price to $17 next? – Yes, but its hike will depend on…

• HYPE was recovering effectively and will problem the $17.15 resistance quickly and flip it to assist.
• The liquidation map confirmed that brief liquidations had been denser and nearer than the lengthy liquidations.

Hyperliquid [HYPE] noticed its Complete Worth Locked (TVL) shrink from $636 million within the first week of March to $230 million a month later, in accordance with information from DefiLlama.

One of many drivers of this exodus of capital was the way in which the Hyperliquid platform dealt with the JELLY saga.

The platform saved its Hyperliquid Supplier vault and worn out its destructive PNL that got here on account of the manipulation of JELLY and a dealer’s lengthy liquidation that Hyperliquid inherited.

Within the course of, the legality of their plan of action and the decentralization of Hyperliquid had been questioned.

HYPE may see a brief squeeze within the close to time period

Supply: HYPE/USDT on TradingView

The buying and selling quantity of the platform remained advantageous and was below no instant menace. This additionally meant the demand for HYPE was wholesome. The token’s breakout above the descending channel every week in the past has erased all of the losses the token made after the twenty fourth of March.

It was approaching the $17.15 resistance that marked the swing excessive earlier than the descending channel. On the 12-hour chart, HYPE has had a bullish construction since climbing above the decrease excessive at $12.

Subsequently, the 1-day and decrease timeframes have a bullish construction, and a transfer past $17.15 would sign one other leg greater for Hyperliquid token costs. This final result appeared probably if Bitcoin [BTC] held its nerve.

The A/D of HYPE made a brand new excessive, rising past the March highs. The RSI was additionally above 60 to sign robust upward momentum.

Supply: Coinglass

The liquidation map confirmed that some short-term volatility was doable. The brief liquidations overhead had been greater leverage positions, and had a better estimated liquidation leverage nearer to the value.

Particularly, the $17, $17.3, and $17.45 ranges are short-term targets as a result of excessive leverage liquidations clustered in these areas.

Merchants ought to be cautious of a false breakout previous $17.15, pushed by brief liquidations, because it may reverse rapidly. A retest of the $17 zone as a requirement stage may current a protracted alternative for merchants.

Monitoring BTC’s motion will probably be essential to understanding market-wide sentiment and confirming potential worth route.

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion