Nearly all of the top 100 cryptocurrencies have recorded substantial gains over the last 24 hours, boosted by news of the peace deal between the United States and Iran.
Hyperliquid (HYPE) stands out among the top performers, with its price spiking by 12%. Some analysts believe it may jump even more in the following days, while others cautioned that the bears may soon regain control.
Going Higher?
In early June (when the broader crypto market was bleeding heavily), HYPE exploded to an all-time high of around $75. However, the historic peak was short-lived, and the price headed south to around $53 in the following days, influenced by bearish factors such as Arthur Hayes’s decision to dump all his positions in the asset.
Currently, though, the asset trades at around $68, representing a 28% increase from the local bottom. Moreover, its market capitalization has surged past $15 billion, and thus HYPE re-entered crypto’s elite top 10 club after surpassing the OG meme coin Dogecoin (DOGE).
According to some analysts, the recent pump to almost $70 simply marks the early stages of a much larger upward move. X user Cozy the Caller thinks that HYPE “just goes straight to $100 from here.”
KNIGHT and Owl Prints were also optimistic. The former projected a rise above $110 in the coming months, while the latter argued that reclaiming $64.60 (which, for the moment, seems to be the case) “opens up a clean run toward previous cycle peaks.”
The Bearish Outlook
Last week, many market observers spotted the formation of a head-and-shoulders pattern on HYPE’s chart, which has historically been a precursor to a pullback.
Several hours ago, Ali Martinez opined that the recent price action has seemingly shaped the right shoulder of that structure, labeling $65 as the key resistance level. He also warned that losing $54 could trigger a major correction down to $40.
HYPE’s current Relative Strength Index (RSI) raises the possibility of a sudden price drop. The technical analysis tool runs from 0 to 100, and ratios above 70 signal that the asset is overbought and due for a potential pullback. As of this writing, it stands at 93, showing that the valuation has surged in an unhealthy manner.
The next bearish element worth mentioning is HYPE’s exchange netflow. Over the past three days, investors have moved some of their holdings from self-custody to centralized platforms, with inflows outpacing inflows. This increases immediate selling pressure.
The post Hyperliquid (HYPE) Soars 12% in a Day: More Gains Ahead or a Bull Trap? appeared first on CryptoPotato.
