Hyperliquid Gains 37%, Faces Headwinds Amid Correction Fears

by

As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen more than a few bull runs and bear markets. The recent surge in Hyperliquid (HYPE) has piqued my interest, especially given its impressive 37% growth in just seven days following one of the largest airdrops this year.

The price of Hyperliquid (HYPE) has jumped by 37% over the past week, fueled by one of the biggest airdrops this year. Technical indicators like RSI and BBTrend suggest that the upward trend is still strong, with potential for more growth, albeit at a slower pace than its peak.

If the positive trend persists, HYPE might reach a new peak around $28.95 and possibly climb even higher to $30 or $35. On the flip side, a decline in momentum could lead to a drop, with significant support at $15 suggesting a possible 42% decrease.

HYPE RSI Is Currently Far from Overbought

Currently, HYPE’s Relative Strength Index (RSI) stands at 55.8, which is an uptick from yesterday’s 46, suggesting a significant pickup in momentum. This surge hints that the buying activity is resuming following a brief cooling period for the perpetuals Decentralized Exchange (DEX). During the timeframe between December 13th and December 15th, when HYPE hit a new peak, the RSI consistently remained above 70, signaling overbought conditions.

At present, the reading indicates a move towards a more optimistic outlook among investors, potentially strengthening the market’s position for temporary price reinforcement or growth in the near future. This reading is still below the overbought level.

The Relative Strength Index (RSI) is a tool that gauges the strength and speed of price changes to determine if an asset might be too expensive (overbought) or too cheap (oversold). A reading higher than 70 usually indicates overbought conditions, which could mean a price drop or pullback may follow. On the other hand, a reading below 30 generally signals oversold conditions, often predicting an increase or rebound in the asset’s value.

With a High-Intensity Price (HYPE) Relative Strength Index (RSI) at 55.8, this suggests a balanced to bullish trend momentum, implying potential for continued upward price movements since it’s still below overbought territory. If the buying pressure persists, HYPE may challenge new resistance levels; however, if the RSI growth slows down, there might be a temporary period of sideways movement or consolidation.

Hyperliquid BBTrend Is Still Positive

The BBTrend of HYPE is at present 28.4, and it’s been maintaining a positive trend since the end of December 13, about four days after its airdrop, suggesting ongoing bullish energy. However, it has dropped from its maximum of 43 on December 17, a time when HYPE hit a new record high, similar to other altcoins, indicating a period of increased potency.

This decline implies that although the overall upward trend persists, the speed at which the price is rising has noticeably decreased compared to the initial stages of the rise.

The statistical indicator called BBTrend, which is based on Bollinger Bands, gauges the intensity and movement in a market trend. When BBTrend shows a positive value, it suggests a bullish trend or upward momentum; conversely, a negative BBTrend implies a bearish trend or downward pressure.

Despite HYPE’s BBTrend remaining robustly optimistic at 28.4, it’s expected to maintain an upward trend, albeit one that’s somewhat toned down from its peak. This consistent progression might foster additional growth, but the gradual decrease suggests that HYPE may grow less intensively in the immediate future.

HYPE Price Prediction: A New All-Time High Soon?

Should the ongoing upward trend persist, HYPE may soon attempt to surpass its previous record high around $28.95, potentially positioning itself as one of the top-performing newly emerging cryptocurrencies.

If the price manages to surpass its current level, it might propel even higher. Potential goals lie at $30, with possibilities stretching as far as $35 – which translates to a possible 34% increase in value.

If the upward trend falters and gives way to a downward trend, the HYPE price could be vulnerable to substantial declines. A notable level of support can be found approximately at $15, and should this level be reached, it would indicate a potential drop of about 42% from the current prices.

Read More

2024-12-19 22:46