Hyperliquid has spent nearly two weeks recovering after its rally correction. [HYPE] The area of the city that was previously blocking attempts at a rebound is starting to be challenged.
This correction finally reached $59.73 where the downward pressure started to lose strength, and buyers began rebuilding their demand. Since then, HYPE’s price has been steadily rising, currently at $64.97. This represents a substantial recovery of June’s decline.
It is important to note that this rebound indicates the market’s attempt to shift from corrections back into a recovery phase, and not just extend the recent sell-off. The focus on the daily timeframe extends past the recent high of $65.72.
If the buyers are able to maintain their control, they could slowly shift the focus back towards the larger $70-$79 range that was lost when the correction began. The case for an upward trend would increase if that region was reclaimed.
But the recovery has not been completed. If the price retraced to 60.74, it would indicate that the sellers are still in control of the structure.
Can HYPE Bulls claim the June correction again?
After the correction in June, buyers are now gaining ground and the focus is shifting away from the strength of recovery to the durability of the progress.
Prices are based on the 4 hour structure. HYPE The price is trading at around $65.85, and it’s approaching the first major test after rebounding from $53.25.
Focus is on the Fibonacci level of $69.41 and the resistance at $67.11. If both levels are cleared, the narrative of recovery will be strengthened and the region $72-$74 exposed where previously selling pressure was heightened.
It is not clear how to get higher. Recent gains have been unrealized, and this could lead to a profit-taking situation as HYPE approaches the overhead resistance.
RSI remained at 64 and showed that it could rise further before overheating conditions. MACD also remained strongly positive, which suggests that bullish momentum may not have yet been exhausted.
In the event that sellers gain control, retreating to $61.40-$58.24 could be interpreted as a consolidation and not a collapse of structural support. Supporting the market would also keep in place the wider objective of returning to $79.40.
Final Summary
- Hyperliquid [HYPE] Although the market is now in a positive trend, it still needs to be confirmed above overhead supplies.
- HYPE rebuilds lost structures, and the next zone of resistance will determine how durable the recovery is.
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Source: ambcrypto.com
