Hyperliquid (HYPE) officially launched its new policy center in Washington, D.C. this week, signaling a strategic step to strengthen regulatory engagement.
The initiative aims to shape the discussion around decentralized perpetual futures and trading products, as well as foster the development of DeFi within the regulatory framework of the U.S. Jake Chervinsky has been appointed as the center’s first chief executive officer.
This is in the wake of a sudden price jump from around $21.60 to the $35-$38 resistance level, with the token currently trading around $28.97 at the time of writing. Traders are being cautious as they consider the technical levels against the potential long-term implications of regulatory positions.
Also Read: Hyperliquid (HYPE) Consolidation Phase Could Spark Next Major Move
Price Action Shows Key Resistance and Support Levels
On the daily chart, the token is pressing against the immediate resistance at the 20-day moving average of $31.26. The 50-day moving average is just above the price level at $29.25, while the 100-day moving average at $27.79 is a near-term support level. Bollinger Bands show upper resistance at $34.58 and lower support at $27.94.
If the sellers are successful in building hype below the levels of $27-$27.79, the downside targets may move towards approximately $24.50 and then towards the previous swing low of $21.60. However, a daily close above $31.26 could help improve market sentiment and further support the upside momentum.
Momentum Indicators Signal Cooling Bullish Trend
This is indicated by technical analysis, which shows that the bullish run in the token is losing steam. The RSI (14) is currently at 47.53, close to the 50 level but slightly below it, suggesting a weakening trend after reaching close to the overbought level of 70.
Meanwhile, the MACD (12, 26, 9) has created a bearish crossover. The histogram is at -0.51199, indicating moderate selling pressure and not a strong breakdown, as indicated by the TradingView chart.
This kind of activity, price missing a major resistance level while having a neutral-to-bearish momentum outlook, indicates that a pullback may be underway, despite the overall trends still being determined by Hyperliquid’s engagement with regulators.
Why This Matters
Hyperliquid’s expansion into Washington represents a larger regulatory attitude emerging, which could have a significant impact on long-term investor sentiment in the token.
Traders should pay attention to key levels of support and resistance, as momentum indicators suggest a short-term correction is imminent despite the long-term bullish thesis.
Also Read: Hyper Foundation Allocates 1 Million HYPE to Policy Center