Hyperliquid (HYPE) has surged over 8%, marking a strong recovery amidst a broader rebound in the cryptocurrency market. With Bitcoin and Ethereum making attempts to regain their lost ground, Hyperliquid has been one of the standout performers, reaching a price of $13.77 after opening at a lower price of $12.43 earlier in the day.

Hyperliquid’s latest rally comes as part of a broader market recovery. While many digital assets are still grappling with bearish trends, HYPE has shown notable resilience. This price increase is also accompanied by a significant surge in trading volume, which spiked by 47.79%, reaching $73.46 million. At the time of writing, HYPE was trading at approximately $13.68, with a market capitalization of $4.57 billion. This sharp rise has placed Hyperliquid among the top gainers of the day, signaling a potential shift in investor sentiment and confidence toward the token.

Testing Resistance Levels

The key question for investors now is whether HYPE can break past the critical resistance levels that have held it back. The resistance zones lie between $15.96 and $18.68. These levels are crucial to establishing a more substantial bullish support and will serve as a key test in determining whether Hyperliquid can maintain its upward momentum.

For HYPE to continue its uptrend, it will need to breach these resistance levels and solidify support above them. A successful breakout past these levels could see the price surge even further. As it stands, the current price of $13.68 is still far from these high resistance points, and testing them may take a considerable amount of time, depending on the strength of the broader market.

Potential Downside and Support Levels

While the current momentum is positive, it is essential to consider the downside risks. If the market sentiment shifts or the broader crypto market faces more pressure, HYPE could slip back toward its lower price levels. A fall to around $12.52 is a possible scenario if the market turns bearish, with the potential for a deeper correction back toward previous lows around $11. Investors should be mindful of these risks and keep a close watch on the price action, as any shift in market conditions could lead to significant volatility.

Technical Indicators Point to Mixed Signals

Looking at the technical indicators, Hyperliquid’s Moving Average Convergence Divergence (MACD) is showing signs of recovery. The MACD line is currently above the signal line, which is a positive sign for the short-term price movement. However, it is still positioned below the zero line, indicating that the general momentum remains in the bearish region. This suggests that while there may be short-term recovery, HYPE still faces some headwinds before fully breaking free from bearish market conditions.

The Bull Bear Power (BBP) indicator, which stands at 1.144, indicates that bulls are currently in control of the market. This is an encouraging sign, as it points to an increased likelihood of upward momentum in the near term. However, the market sentiment could shift quickly, so caution is advisable for investors.

In addition, the Relative Strength Index (RSI) for HYPE is at 56.25, which places it in the neutral-to-positive zone. This suggests that the asset is neither overbought nor oversold, and it has room to continue its rally if the right catalysts present themselves.

Looking Ahead

Overall, Hyperliquid’s recent 8% rise marks a significant moment for the asset. While the price still faces strong resistance levels, the technical indicators point to a potential for further upward momentum, especially with the bullish control signaled by the BBP. If the broader market maintains its recovery trend, HYPE could break past key resistance levels and continue its ascent. However, investors should remain cautious of any downside risks and monitor market conditions closely to make informed decisions.