Struggling to Maint Momentum: Hyperliquid (HYPE) Nears Crucial Price Thresholds
Hype Around Hyperliquid (HYPE) Wanes as Revenue Soars, Momentum Indicators Fade
Hyperliquid's (HYPE) coffers are brimming, collecting a whopping $42.53 million in fees over the past month. However, the celebratory champagne may need to stay corked, as momentum indicators are starting to lose steam, with both RSI and BBTrend showing signs of chilling out.
HYPE's recent attempts to breakthrough the key resistance at $19.26 have fallen flat, putting a strain on its short-term trend. The price is now teetering at a critical juncture, where it could either crumble beneath support or stage a rebound toward $25.
The Cooling HYPE: RSI Down to 42
Hyperliquid's Relative Strength Index (RSI) is tipping towards the losers' table, dropping from 60.93 yesterday to 42. This sudden plunge signals that recent bullish fervor is subsiding, as traders are becoming more cautious. After reaching overbought territory earlier in the week, HYPE is now flirting with levels suggesting neutral to slightly oversold conditions.
The RSI is a popular momentum indicator that measures the velocity and intensity of an asset's recent price changes, ranging from 0 to 100. Readings above 70 typically signal overbought conditions, while readings below 30 suggest oversold conditions. With HYPE's RSI now at 42, the token is in a neutral zone but leaning towards the bears.
If the RSI continues to fall, it could pave the way for more downward pressure. On the flip side, if it stabilizes and bounces back, HYPE could regain lost ground before deeper losses set in.
HYPE Cheers for Consolidation After BBTrend Drop
Hyperliquid is experiencing a significant drop in its BBTrend indicator, now at 2.63, down from 12.68 five days ago. This dramatic decline demonstrates that the bullish momentum witnessed earlier has fizzled out quickly.
BBTrend measurements falling this sharply usually indicate a slowdown in trend strength, suggesting that the price could be preparing for a consolidation phase or a deeper correction.
BBTrend, or Bollinger Band Trend, gauges the strength of an asset's trend based on the width and expansion of its Bollinger Bands. High values, typically above 10, point to robust trending conditions, while low values closer to 0 suggest a weak or sideways market. With HYPE's BBTrend at 2.63, the current reading indicates weak trend strength.
If the BBTrend remains in the doldrums, it could signal that HYPE will consolidate or move sideways unless new momentum materializes.
Will HYPE Crash or Rally?
HYPE has staged unsuccessful attempts to breach the $19.26 resistance level twice in recent days. This pattern suggests a weakening trend, with a possible death cross on the horizon. If bearish sentiment prevails, HYPE could plummet to test support at $16.82.
Should selling pressure intensify, a breach below $14.66 could open the door to deeper support levels at $12.42 and even $9.32. However, if optimism returns, HYPE could re-launch an assault on the $19.26 resistance.
A decisive breakthrough above that level could pave the way toward $21, and if the bullish vibes persist, HYPE could soar to $25.87, marking its first time surpassing $25 since February 21.
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- Hyperliquid's (HYPE) fund collections from fees have surged, totaling $42.53 million over the past month, yet the token's momentum indicators are waning, with RSI and BBTrend showing signs of cooling down.
- The RSI for HYPE has plunged to 42, signaling a decrease in bullish enthusiasm, moving it from overbought territory to neutral to slightly oversold conditions.
- A persistently falling RSI could lead to increased downward pressure, but if it stabilizes and rebounds, HYPE could recover lost ground before further losses occur.
- The BBTrend of HYPE has significantly dropped to 2.63, indicating a loss of bullish momentum and a possible preparation for consolidation or correction.
- If the BBTrend remains weak, HYPE may consolidate or move sideways, unless new momentum arises.
- The unsuccessful attempts by HYPE to breach the $19.26 resistance level and the possible upcoming death cross suggest a weakening trend that could cause HYPE to crash to test support at $16.82 or even $9.32.
- Conversely, a breakthrough above the resistance level could propel HYPE to potential highs of $25.87, marking the first time HYPE surpasses $25 since February 21, and trading platforms such as eToro, YouHodler, Wirex, NEXO, and MEXC could be used for these transactions. (Disclaimer: Always research and consult a financial advisor before making investment decisions.)
