Hyperliquid (HYPE) has been on the road to recovery, with the potential to challenge the $17.15 resistance level and turn it into support. However, the platform saw a decrease in Total Value Locked (TVL) from $636 million to $230 million in just a month, mainly due to the JELLY saga. Despite this, the trading volume remained stable, indicating healthy demand for HYPE. The recent breakout above a descending channel has erased previous losses and positioned the token for further gains.
The platform’s trading volume remained steady, signaling strong demand for HYPE. The token’s breakout above a descending channel has erased previous losses and set the stage for potential gains. As HYPE approaches the $17.15 resistance level, a move beyond it could signal further price increases. The bullish structure on lower timeframes and indicators like A/D and RSI suggest upward momentum for HYPE. However, traders should be cautious of short-term volatility and false breakouts driven by short liquidations.
The liquidation map highlighted the possibility of short-term volatility, with short liquidations clustered near key resistance levels like $17, $17.3, and $17.45. Traders should be aware of potential false breakouts past $17.15 and consider a retest of the $17 zone as a long opportunity. Monitoring Bitcoin’s movement will also be crucial in determining market sentiment and price direction. It’s important to note that the information provided is not financial advice and reflects the writer’s opinion.
In conclusion, Hyperliquid (HYPE) shows signs of recovery with the potential to challenge key resistance levels and continue its upward trend. Despite a decrease in TVL due to the JELLY saga, the platform’s trading volume remains stable, indicating healthy demand for HYPE. Traders should be cautious of short-term volatility and false breakouts driven by short liquidations, while also monitoring Bitcoin’s movements for market-wide sentiment. Overall, HYPE’s bullish structure and indicators suggest a positive outlook for the token, pending external market factors.
