Hyperliquid (HYPE) is experiencing short-term selling pressure as the broader cryptocurrency market shows mixed price movement. HYPE is currently priced at $30.51.
Over the last 24 hours, the token has fallen by 5.27%. However, the market activity for the asset is still high, with a daily trading volume of $436 million and a market capitalization of approximately $7.81 billion, making up 0.33% of the total market dominance.
Hyperliquid Struggles Reaching $35.80 Resistance
Recent chart activity, as shared by market analyst Crypto TXG, indicates that HYPE has recently lost support at the $28.50 level, but quickly rebounded above it before continuing its fall. The token was seen briefly trading towards $23.76, but it was quickly pushed higher by buyers.
The price has now seen strong buying activity, as it has moved significantly higher, trading above the $28.50 level after re-establishing it as support. However, it has been unable to sustain this momentum towards the next level of resistance, which is $35.80.
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Breakout Above Channel Could Trigger Rally
The various patterns that are forming on the chart also give us clues about the direction the market will take in the future. According to analysts, the formation of a bullish pennant is also evident in the HYPE chart, and this pattern is likely to trigger a rally if the asset price is able to break above the channel.
The overall chart also shows the formation of an ascending channel, whereby the asset price is oscillating between the support and resistance lines. The middle portion of the overall HYPE chart is often referred to as the neutral zone, whereby the direction of the asset is uncertain at this time.
If the asset can break above this zone, the Hyperliquid asset is likely to move towards the upper channel of the ascending channel.
However, if the asset is unable to break through this zone, the asset is likely to experience a rejection at this point, leading to a potential pullback before the asset is able to move in the desired direction.
The overall HYPE chart also shows the various zones where the asset is likely to experience a buy or sell opportunity. At the moment, the focus of the overall Hyperliquid market is the ability of the asset to hold the support at the $28.50 level.
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