Hyperliquid (HYPE), Whales Sell at $100 Threshold...$85 Defense Line in Emergency

▲ Hyperliquid (HYPE), USD/ChatGPT Generated Image

HYPE, the native token of the decentralized perpetual futures exchange Hyperliquid, is undergoing a short-term correction at the threshold of breaking $100 after its September rally, putting its $85 support line to the test.

U.Today reported on October 1st that HYPE has entered a significant correction phase, following its sharp rise in September when it soared to the $97-$98 range. Throughout September, HYPE experienced an explosive rally, vertically rising from around $57 to just under $100. However, after failing to reclaim the psychologically significant resistance level of $100, its highs have gradually trended downwards. Recently, daily candlesticks have fallen below the $90 mark, and it is currently trading around $86.14, approximately 12% down from its peak.

The current price is touching a rising short-term moving average located around $85 to $86. The market views this range as a critical support line that will determine future price movements. The Relative Strength Index (RSI), which had entered overbought territory, has moved down into the neutral zone, partially alleviating the market's overheating accumulated during the September rally. Technically, while indicator cooling itself does not immediately signify a bearish reversal, analysis suggests that if buying forces fail to defend this support, the correction could deepen further.

Concurrently, selling pressure from large whale investors has been identified as a factor increasing short-term supply and demand burden. It is explained that as large holders have recently realized profits and sold off assets, short-term momentum has shifted to a correctional trend. However, Hyperliquid maintaining substantial on-chain fundamentals in the decentralized perpetual futures sector, and the price being robustly formed above the mid-to-long-term moving averages, are considered positive factors.

The market's attention is focused on whether the $85 to $86 support line will be defended. Experts predict that if price defense in this range is successful, HYPE could reorganize its short-term momentum and return to an upward trajectory. However, if the support line breaks, a deeper retracement phase would be inevitable.

After its September surge, HYPE, now pausing for breath, is engaged in a fierce battle at the critical $85 support line. Market attention is on whether HYPE, having shed its overheating indicators, can use the support of its short-term moving averages as a springboard to rekindle the spark for a re-breakout of $100.

[Article Summary]

-HYPE underwent a correction, falling to around $86.14, approximately 12% down from its $98 peak after failing to break above $100.

-With the Relative Strength Index cooling down to the neutral zone and alleviating overheating, defending the $85-$86 short-term moving average has been identified as a key challenge.

-Selling pressure from large whales is acting as a short-term burden, but the exchange's fundamentals and the mid-to-long-term upward trend are being maintained.

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