Hyperliquid (HYPE) has once again caught the attention of traders as it demonstrated a notable recovery after maintaining crucial support at $28. This bounce back indicates strong demand, prompting market participants to consider potential targets for the next upward movement. Analyzing essential support and resistance levels can provide valuable insights into trading strategies, allowing for better planning of entries, exits, and risk management.
The recent price action around the $28 mark has reinforced a bullish sentiment among traders. HYPE tested an ascending trendline in this vicinity, where buyers quickly intervened to prevent further declines. This decisive response from the market has solidified the short-term bullish trend and upheld the bullish price structure. Historically, this support zone has proven effective in countering more significant corrections, as sellers failed to maintain downward pressure. The activity from long position holders at this rising support suggests a strong belief in a continuation of the upward trend.
In addition to the positive price action, the Stochastic RSI has rebounded from an oversold condition, further supporting the bullish outlook. This indicator implies that buyers are likely to dominate the near-term price movements. Traders should keep an eye out for confirmation in the form of sustained buying momentum. If HYPE can maintain its position above $28, it may pave the way for an extended rally toward higher targets.
An additional factor contributing to HYPE”s potential upward trajectory is the reduction in transaction fees, which have recently decreased significantly to approximately $2 million. This drop in costs can stimulate trading activity, thereby enhancing market liquidity and volatility. Such conditions can bolster HYPE”s bullish momentum, making it essential for traders to monitor both fee trends and technical indicators for a comprehensive understanding of market sentiment.
Looking higher, HYPE faces a significant liquidity cluster around $37.20, estimated at about $1.32 million. Markets are inherently attracted to these liquidity zones, and with increased volatility, prices often gravitate toward these levels. A successful move towards this cluster could not only test liquidity but also affirm the strength of the recent support defense. Traders should remain vigilant at this level, as it may present opportunities for profit-taking or confirming breakouts.
If buying momentum persists, the $37.20 mark is positioned to be the next logical target for traders. While bulls currently have the upper hand, it”s crucial to obtain confirmation through ongoing trading activity. Increased market engagement and sustained trendline support could accelerate HYPE”s journey toward this liquidity zone. By carefully monitoring both trendline support and liquidity areas, traders can make more informed decisions. The interplay of technical analysis and on-chain data offers a more thorough market perspective, particularly as lower fees and liquidity incentives may expand volatility, creating opportunities for both short-term traders and swing investors. Effective risk management around these key levels will ensure that positions are safeguarded while allowing for potential gains.
