Will Hyperliquid (HYPE) Break Through $30 Resistance or Experience a Short-Term Correction?

Hyperliquid (HYPE) has seen a downward trend in recent months, with efforts to create a base near the $25–$26 range. While the price is still under key moving averages, there are signs that selling pressure is easing and a potential consolidation phase may be ahead. Key support and resistance levels will influence the direction of the cryptocurrency in the short term.

Key Takeaways

Hyperliquid is experiencing a downtrend, forming lower highs and lows.
A potential base has formed around the $25–$26 zone.
The price remains below the 50-day and 100-day moving averages located at $31.7 and $37.5.
Key support is at $25, with further support at $23 if weakness continues.
Immediate resistance levels are around $28.5–$29 and at $31.

Will Hyperliquid (HYPE) Overcome $30 Resistance or Face a Short-Term Correction?

Current Price Trend of Hyperliquid

Recently, Hyperliquid has been on a noticeable downtrend since the end of October. The price trend shows a series of lower highs and lower lows, signaling weak market sentiment throughout November and December. However, recent trading activity indicates a reduction in selling pressure, as the price attempts to establish a base around the $25–$26 range and is making slight upward movements.

Moving Averages Indicate Resistance Levels

From the perspective of moving averages, the prevailing trend remains weak. Hyperliquid’s price trades below both the 50-day and 100-day moving averages, which are situated at approximately $31.7 and $37.5, respectively. As both averages trend downward, it underscores that the overall market trend has not yet reversed. Nonetheless, the gap between the current price and the short-term moving average has lessened, suggesting a potential for consolidation rather than an ongoing decline.

Source: TradingView

The Relative Strength Index (RSI) on the daily chart is currently in the mid-40s, indicating neutral momentum. While selling pressure seems to have diminished, buying strength remains relatively weak. This indicator does not point towards a strong upside potential at this time, nor does it suggest oversold conditions.

Support and Resistance Levels

In terms of significant levels, the $25 area serves as a crucial support zone, with a deeper support level positioned near $23, should any weakness occur. This level has proven to be supportive during recent price retracements and will be essential for maintaining short-term stability. On the upside, immediate resistance is observed between $28.5 and $29, with the $31 mark being resistance as it correlates with the 50-day moving average. A price move above these resistance levels is necessary to enhance the short-term market structure.

Overall, the price action of Hyperliquid indicates early signs of stabilization after an extended downward period. Although the broader trend is still in a recovery phase, maintaining stability above the critical support levels may allow the token to enter into a consolidation phase in the upcoming weeks.