Hyperliquid’s $43 rally stalls – What’s next for HYPE traders?

Key Takeaways

Should HYPE bulls prepare for a recovery?

While HYPE’s rally to $43 was encouraging, the daily structure remained bearish.

What are the next price targets?

The $36 level acted as a short-term demand zone, while the daily chart identified $33.10 and $31.18 as additional key support levels.

At the time of writing, Hyperliquid [HYPE] was up 4.3% over the past 24 hours.  However, its gains were capped by Bitcoin’s [BTC] rejection at the $116,000 resistance level.

In the last 6 hours, HYPE retraced 7.64%, falling from $43.14 to $39.85. Despite the pullback, trading volume surged by 30%, indicating heightened market activity.

The wider altcoin market had experienced a price bounce in recent hours, and the increased HYPE trading reflected this.

Additionally, DefiLlama data showed that the DEX saw consistent trading volume in October. The platform also dominated the top chains by fees.

Which way will the next HYPE trend go?

Source: HYPE/USDT on TradingView

HYPE saw a bearish market structure shift on the 1-day timeframe on the 25th of September. This shift was highlighted in orange when the price fell below the swing low at $42.39.

The subsequent rally to $51 was not enough to establish a bullish structure, and the volatility on the 10th of October sent HYPE lower.

As far as price action was concerned, the past two weeks highlighted the $47.1-$50.85 area as a supply zone. The $32.95-$42.46 area was also an imbalance that could initiate a bearish price move.

The Fibonacci retracement levels showed that $44.57 was another key resistance. To flip the 1-day structure bullishly, HYPE buyers must drive prices beyond these obstacles and past the $51.4 swing high.

Moreover, we could observe from the chart above that RSI was at 41, showing bearish momentum, and the OBV’s downtrend since mid-September indicated steady selling pressure.

Hence, traders can retain a bearish bias for HYPE.

The lower timeframe shows short-term weakness

Source: HYPE/USDT on TradingView

On the 1-hour chart, the past two days saw the price action shift bullishly. At the time of writing, the hourly swing low at $39.64 was being challenged.

The RSI also fell below neutral 50, reinforcing the growing bearish momentum.

A 1-hour trading session closing below this level could see the price of HYPE fall to $36, the short-term demand zone, or even lower.

Since the daily structure was bearish, a move to $33.1 and $31.18 was a possibility swing traders should be wary of.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion