Hyperliquid, Buying Frenzy Ahead of Mid-$40 Resistance...Eyeing $50?

▲ Hyperliquid (HYPE)/AI Generated Image

Hyperliquid (HYPE) is moving past a long recovery period and approaching a new bullish phase. After hitting a low, a consistent pattern of higher highs and higher lows has emerged, suggesting a structure that is building upward momentum rather than just a simple rebound.

U.Today reported on May 6 that HYPE's price trend is showing clear strength after a prolonged recovery. On the chart, the price has consistently risen from its low, forming successive higher highs and higher lows. This structure is often observed in markets where upward momentum is accumulating, rather than in markets where buying pressure is weakening.

HYPE has regained key moving averages after recording significant gains from its bottom. Both the 50-day and 100-day exponential moving averages are sloping upwards, and the price remains above these moving averages. This is presented as a signal that buyers are in control in the medium-term timeframe. The recent correction also stopped above the support line, creating a pattern closer to a continuation of the uptrend rather than a reversal downwards.

The key lies in breaking through resistance. HYPE is currently trading just below the next major resistance zone, located in the mid-$40 range. The chart shows signs of multiple tests of this price level. Analysis suggests that the more times the same resistance line is tested, the more selling pressure in that area is gradually absorbed, increasing the likelihood of a clear breakout.

Momentum indicators also support a bullish scenario. The Relative Strength Index (RSI) is maintaining an upward trend above the neutral line, reflecting sustained buying pressure. Trading volume has also remained stable during the upward movement, indicating continuous market participation rather than a one-time surge.

If HYPE surpasses its current resistance, a move towards $50 is considered a realistic short-term target. $50 is a psychological price level, and a confirmed breakout could attract further interest from traders. If liquidity and positions lean in one direction, the pace of the ascent could be faster than expected. HYPE is preparing for continued upward movement beyond a mere recovery, and if resistance breaks, the next bullish phase could unfold rapidly.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*