Hyperliquid, Buying Frenzy Before Mid-$40s Resistance...Is it Eyeing $50 Too?

▲ Hyperliquid (HYPE)/AI-generated image

Hyperliquid (HYPE) is moving past a long recovery period and approaching a new bull market phase. The consistent pattern of higher highs and higher lows since its bottom suggests a structure that is building upward momentum, rather than just a simple rebound.

U.Today reported on May 6 that HYPE's price action shows clear bullishness after a prolonged recovery. On the chart, the price has consistently risen from its bottom, creating a series of higher highs and higher lows. This structure is often seen in markets where upward momentum is accumulating, rather than in markets where buying pressure is weakening.

HYPE has reclaimed 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 is sustained above these moving averages. This is presented as a signal that buyers are in control in the mid-term timeframe. Even the recent correction halted above support, forming 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 its next major resistance zone, located in the mid-$40s. The chart shows signs of multiple attempts to test this price level. Analysis suggests that repeatedly hitting the same resistance line gradually absorbs the selling pressure in that area, increasing the likelihood of a clear breakout.

Momentum indicators also support a bullish scenario. The Relative Strength Index remains above the neutral line, continuing its upward trend, which reflects sustained buying pressure. Trading volume has also remained stable during the ascent. This indicates consistent market participation rather than isolated spikes.

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 accelerate faster than expected. HYPE is in a phase of preparing for continued growth beyond a mere recovery, and if resistance breaks, the next upward leg 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.*