Altcoins News

Story: Hyperliquid Breaks $19.2 Amid Bearish Divergence – $22 Potential

By Julie Binoche

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Hyperliquid (HYPE) has managed to surpass $19.2, breaking out after an 11-day consolidation beneath that level.

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After spending over a week below $19.2, HYPE’s price action finally managed to break above that level, flipping it from resistance to support.

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Despite these signals, HYPE managed to outperform the popular blockchain TRON (TRX) in terms of daily fees, with Hyperliquid generating $2 million in fees compared to TRON’s $1.

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Looking at the technical analysis, the price target for Hyperliquid is influenced by Fibonacci retracement and extension levels. After a drop from $17.34 to $9.

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While consolidation periods typically indicate indecision in the market, a notable increase in the Chaikin Money Flow (CMF) to +0.

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However, there are signs of concern. The Relative Strength Index (RSI) has made a lower high, despite the price of HYPE making a higher high in recent days.

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On-chain data, including the 3-month liquidation heatmap, also suggests that $22 is a key price target for Hyperliquid.

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However, the 2-week liquidation heatmap indicates that a move toward $22 may not be straightforward. The liquidity cluster at $20.

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Given the presence of bearish divergence on the 4-hour chart and the consolidation around $19.

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The key levels to watch are the $19.2 support and the $20.4 liquidity zone, as these will indicate the direction of the next major move.

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In conclusion, while the recent breakout above $19.2 is a promising sign for Hyperliquid, traders should remain cautious of the bearish divergence and potential consolidation.

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