The Hyperliquid (HYPE) token is trading at $45.97 after successfully holding the $40 key support zone. This gave the market a 28% surge in 6days before retracing. Recent price movement shows a modest 1.94% surge over the last 24 hours, indicating a developing bounce.
HYPE Price action | Source: CoinMarketCap
At present, the market reports a market cap of $15.43 billion. With this, the token solidifies its position among major crypto assets. However, in the same 24h range, we have seen a 31% drop in trading volume. This indicates the present trend may not be as strong as it appears. This puts the market in a neutral position.
From a technical standpoint, the $45 level is more than just a psychological mark for HYPE. Chart analysis shows that this area acts as the lower boundary of a long-term ascending parallel channel.
HYPE Price analysis | Source TradingView
This channel has defined the bull trend for HYPE since early this year. The price bounce from this floor confirms the long-term trend remains intact for now.
Meanwhile, the 14-period RSI is at a neutral 46.27 reading, which has plenty of room for a move upward before the token goes into overbought territory.
HYPE RSI movement | Source: TradingView
Looking ahead, the market presents us with two possible scenarios. First, the next key target for buyers lies near the mid-line of the current channel, around the $50 level. A clear move above this area could open the way for a test of the $60 resistance zone.
On the other hand, should the present rally, which is powered by low trade volume, fail to maintain its momentum, sellers could regain control. A close below the $40 support level would signal a breakout of the present bull channel.
In that case, a deeper pullback may follow, with the price possibly retesting the next significant demand zone between $39 and $36. The short-term outlook for the Hyperliquid token will largely depend on on if we see new capital enter the market in the coming days
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