- Hyperliquid price posts a four-day uptrend, consolidating the previous week’s bearish breakdown.
- Mixed concerns over 10 million HYPE unlock on November 29 favor the altcoin’s corrective bounce.
- Technical analysis highlights $18.30 amid a downside break of a triangle, bearish DMI clues.
- 200-day EMA acts as an additional upside filter before defying challenges to HYPE’s broad bullish trend.
Hyperliquid (HYPE) price hits a weekly high of around $34.80 early Wednesday, up for the fourth consecutive day, as traders prepare for a huge token unlock, scheduled for November 29. In doing so, the HYPE price action reverses the previous bearish breakdown of an eight-week symmetrical triangle. That said, the altcoin stays on the way to a two-month downtrend, but still defends the yearly bullish momentum.
Also keeping the buyers hopeful is a sustained increase in the trading volume and market capitalization (market cap). According to Santiment, Hyperliquid’s daily trading volume rises to a five-day high of $528.19 million as the market cap rebounds from a six-month low to $11.68 billion by press time.
Still, bearish signals from the Directional Movement Index (DMI) momentum indicator, fears of an increase in supply, and the presence of multiple upside hurdles challenge the HYPE bulls.
With this, the altcoin traders are likely facing hardships in extending the latest recovery, highlighting the theoretical target of a triangle breakdown, viz. $18.30, for bears to watch. Read Details!
The Hype around 10 Million HYPE Unlock…
On November 23, a pseudonymous analyst, Avseenko, conveyed the news of 10 million Hyperliquid (HYPE) tokens being queued for unstake, with a quarter of those belonging to HyperLabs.
On a different page, AMB Crypto highlights the Tokenomist data while stating that about 3.6% of HYPE circulation, or 10 million HYPE, will be unlocked over the weekend to support the founders and team.
That said, a report from Laevitas highlights the options market data to raise a possibility of facing a 10% slump in price, to around $28.00.
Meanwhile, CoinGlass data suggests more outflow of the HYPE token from exchanges, potentially towards self-custody, which is considered a bullish sign.
Notably, a crypto analyst, Teng Yan, anticipates a lack of action despite a strong HYPE unlock over the weekend.
Technical Analysis Keeps Bears Optimistic
With the HYPE’s triangle breakdown and bearish DMI signals, the altcoin’s latest recovery looks suspicious as long as the price stays below the $38.60 resistance confluence.
Hyperliquid Price: Daily Chart Suggests Further Weakness
Hyperliquid’s four-day rebound has yet to reject the previous breakdown of an eight-week symmetrical triangle, as well as the 200-day Exponential Moving Average (EMA).
The DMI momentum indicator also flashes bearish signals as the Downmove (D-, Orange) line tops the Average Directional Index (ADX, red) and Upmove (D+, Blue) lines, in that order, and suggests downside momentum, even as the D- figure is close to the 25.00 neutral threshold.
Hence, the Hyperliquid price recovery is likely to face hardships as long as it defends the previous downside break of a multi-week triangle and the 200-day EMA, highlighting the $38.60 hurdle where the triangle’s bottom joins the key EMA by the press time.
Even if the HYPE crosses the $38.60 key hurdle, the 38.2% and 23.6% Fibonacci retracements of its April-September upside, close to $40.30 and $47.60 respectively, could challenge the bulls.
Above all, a downward-sloping resistance line from September, near $49.10, and the $50.00 round figure, act as the final line of defense for the HYPE bears.
Alternatively, the 61.8% and 78.6% Fibonacci ratios, close to $28.45 and $20.00, can attract the Hyperliquid sellers during the quote’s fall towards the triangle breakdown’s theoretical target of $18.30.
Below that, the yearly low marked in April around $9.32 will be in the spotlight.
Conclusion
Hyperliquid’s bearish breakdown joins a looming huge token unlock to keep sellers hopeful. However, the market players seem to be divided, and the altcoin portrays a bullish trend on a yearly basis, which in turn requires caution from the bears.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP Tumble on Fed Buzz; More Pain Ahead?
