- HYPE saw a 6% surge after retesting a crucial demand zone within 48 hours.
- The Long/Short Ratio and 90-day delta hinted at a possible reversal.
Hyperliquid [HYPE] has experienced a 6% increase following a successful bounce from a key demand zone around $30.67. This demand zone has witnessed three rejections in the past two weeks alone.
The consistent rejections suggest strong buyer defense of the level. On the daily chart, HYPE prices have rebounded after each rejection, indicating robust underlying demand, with the latest bounce being the most optimistic.
Interestingly, the altcoin’s stochastic RSI, a significant momentum indicator, was in the oversold territory at the time of writing, increasing the likelihood and scale of a potential price reversal.
Historically, this region has signaled price reversals for HYPE, particularly when accompanied by strong buying pressure.
Source: TradingView
Momentum indicators point towards a bullish reversal
The bullish price movement is supported by positive on-chain data for HYPE.
The 90-day Cumulative Volume Delta, which measures the disparity between buy and sell volume, indicated a dominance of buyers.
As the delta continues to rise, it signifies an influx of stronger buy orders into the market, reinforcing the ongoing bullish reversal.
Source: CryptoQuant
Market sentiment metrics also lean towards bullishness. The altcoin’s Long/Short Ratio was at 1.04 at the time of writing, indicating continued control by HYPE bulls.
Although slightly higher, the variation in crypto volatility could lead to additional price movements alongside other bullish signals.
Source: Coinglass
Is HYPE poised to break above $40?
With the current trend in its favor, HYPE could be gearing up for another attempt at surpassing the $40 mark. However, investors should monitor market volume and prevailing sentiment.
If buying pressure persists and volume increases, a $40 target could be within reach.
Nevertheless, caution is advised. Unless bulls can sustain the current momentum, HYPE might revisit the $30–$32 range for another test before making a definitive move.
Meanwhile, the combination of an oversold stochastic RSI, a dominant buyer trend, and a favorable Long/Short Ratio provides a positive outlook for both HYPE traders and investors.
sentence: “The cat is sleeping peacefully in the sun.”
“The peaceful cat is sleeping in the sun.”