Hyperliquid Continues to Rise as Traders Watch Important Support and Resistance Channels

Hyperliquid Market Analysis

• Current Price Action: Hyperliquid is trading within a defined ascending channel, currently priced at $44.19 after a 1.73% decline. The support level is identified between $41–$42, which presents favorable long entry opportunities due to its historical reliability.
• Resistance Levels: The upper boundary of the channel is marked at $52–$54, which serves as the next profit-taking zone for traders. A breakdown below the support could lead to further declines towards $36–$38.

Market Structure and Indicators

• Channel Dynamics: Analyst Alpha Crypto Signal highlights that the price has been respecting the ascending channel since early June, providing clear boundaries for trading strategies. The midline of the channel aligns with the 50-day Simple Moving Average (SMA) at $43.92, indicating a critical reference point for trend continuation.
• Resistance and Support: The 9-day Exponential Moving Average (EMA) at $45.32 is currently acting as a dynamic resistance level. A stabilization above these moving averages could signal a potential upward movement towards the channel's upper boundary.

Trading Volume and Market Cap

• Volume Trends: Recent trading volume has decreased during the pullback, indicating reduced buying pressure. However, the market cap of $14.75 billion supports ongoing market activity and helps stabilize price movements.
• Circulating Supply: With a circulating supply of 333.92 million HYPE tokens out of a maximum of 1 billion, approximately one-third of the tokens are active, contributing to steady price action as more tokens are gradually unlocked.

Entry and Exit Strategies

• Optimal Trading Zones: Traders are advised to consider entries near the lower boundary of the channel ($41–$42) due to its historical performance. A successful move from this level could target the resistance zone at $52–$54 for profit-taking.
• Risk Management: If the price fails to maintain support, sellers may test demand levels around $36–$38. Until a breakdown occurs, the overall market structure remains bullish, favoring upward movement within the established channel.