HYPE on the Rise: A Surge Towards $17?

HYPE is showing signs of a robust recovery, eyeing the $17.15 resistance level with the potential to flip it into a supportive ground shortly.

Short Liquidations Shaping Market Dynamics

Recent data reveals that short liquidations are more densely packed and closer to the market than long liquidations, hinting at upcoming volatility.

Capital Exodus: What’s Behind the Decline?

Hyperliquid, the platform behind HYPE, witnessed its Total Value Locked (TVL) plummet from $636 million in early March to just $230 million within a month. A significant factor in this drastic capital withdrawal stemmed from how the platform addressed the controversial JELLY situation.

Despite the challenges, Hyperliquid managed to protect its vault while erasing the negative Profit and Loss (PNL) caused by the fallout from JELLY trading manipulations.

This incident has raised questions about the platform's legal strategy and decentralized structure, igniting discussions in the community.

Short Squeeze Potential on the Horizon

Looking ahead, HYPE might be on the cusp of a short squeeze. The trading volume remains stable, indicating healthy demand for the token. After breaking free from a descending channel last week, HYPE has regained all losses suffered since March 24.

Currently, it’s closing in on that pivotal $17.15 resistance mark—the height of the previous swing before the downward trend. HYPE’s bullish momentum has been evident since it broke above a lower high at $12.

Technical Analysis: What the Numbers Say

Both the 1-day and lower timeframes now exhibit bullish patterns. If HYPE surpasses the $17.15 threshold, it could signify another upward movement for token prices, particularly if Bitcoin [BTC] maintains its current trajectory.

Moreover, the Accumulation/Distribution (A/D) for HYPE has reached new highs, surpassing March peaks. An RSI above 60 further substantiates strong upward momentum.

The Risks of a False Breakout

However, traders should remain wary of a potential false breakout past the $17.15 mark triggered by short liquidations, as it might reverse quickly. A retest of the $17 zone could emerge as a lucrative buying opportunity.

Keep an Eye on BTC

Monitoring Bitcoin’s movement will be crucial in gauging overall market sentiment and verifying the future price direction of HYPE. Stay alert!