Examining HYPE’s range-bound setup as Hyperliquid waits for a trigger

Hyperliquid remained caught in a bearish trend.

Bitcoin’s inability to break out past the local resistance at $94k meant that the market-wide sentiment remained muted.

According to Dune Analytics, Hyperliquid saw fewer active users and volume, a trend that began in October. A week ago, the impact of the monthly HYPE unlocks was explored.

It concluded that it was too soon to tell how the market would digest the news, especially with the HYPE buyback program affected by the market conditions.

Analysis showed that the token was likely to see more downside in the short term.

Assessing the next week’s HYPE trend

The previous price report noted the token’s bearish structure on the daily timeframe. The short-term resistances at $29.88 and $30.68 remained unbroken.

On the 4-hour chart, a range formation has developed over the past week. The $29.88 resistance was near one extreme of the range, with the range low at $27.22. As things stand, traders can utilize the range till it is broken.

The OBV made a new lower low over the past three days, which showed that selling pressure has been prevalent despite the range-bound price action. This gives swing traders more confidence to go short near the range highs, and a bit less confidence betting on a rebound from the lows.

The 30-day Liquidation Map showed that short positions had slightly more cumulative leverage nearby than longs. At the same time, there was more leverage with the long positions whose liquidations lie around $26.5-$27.

This meant the puzzle has no easy solution. Liquidity could pull prices either way- but which one would come first?

Traders’ call to action- wait for the first impulse move

HYPE is likely to gravitate along the path of least resistance and will also be influenced by what Bitcoin [BTC] does.

This path is not immediately clear, but its targets are. Either $31 would be revisited, or $26.5 would be.

This move would likely be a liquidity sweep. The opposing band of liquidity highlighted would likely tug on HYPE, which could make for a feasible short-term trade.

Final Thoughts

• The long-term Hyperliquid trend was bearish, and a short-term range was established over the past six days.
• Traders can wait for a bout of volatility in the late hours of Sunday to sweep a pocket of liquidity nearby, before looking to bet on a HYPE reversal to the opposing liquidity.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion