Hyperliquid Gains 20% But Faces Key Resistance at $38. Will it Surge Higher?

Hyperliquid opened at $36.2 on Thursday and saw a slight retracement at the start of the day. It rebounded and surged to $38.

Although it experienced a slight correction after reaching its high, it trades nearly 3% above its opening price. It also holds prices close to its peak.

Thursday marks the second day of consecutive increases. It saw notable increases during the previous intraday session, gaining almost 6%. In hindsight, the two-day uptrend is not a standalone event. The 1-day chart shows that it’s been mostly bullish since the beginning of March.

On the 1-month scale, it is up by over 19%. It saw a significant increase during the first week, but the upward momentum fizzled out. It resumed the latest uptrend on Sunday but is up by over 20% on the 1-week scale.

Hyperliquid is seeing notable increases on several timeframes, and indicators are flipping positive on the larger scale. However, the opposite is true on the 1-day chart.

The asset trended close to bollinger’s upper band since last week. It retraced and rebounded off the middle band a few days later, then resumed its upward movement and is now trending close to the metric.

It broke above the bands in Wednesday and repeated the action on Thursday. Based on previous price movements, the uptrend is nearing its end.

Aside from the BB, the relative strength index is nearing 70. Currently at 66, it is only a few clicks away from being overbought; a correction is almost assured.

Nonetheless, a closer look at the candle representing the current day shows the first signs of bullish exhaustion. HYPE recently tested $38 resistance and faced rejection, resulting in the current decline.

Why Hyperliquid Must Break $38

The last time Hyperliquid tested $38 was on Feb 3. It briefly broke above it but retraced afterward, ending the day with no notable price changes. Nonetheless, it marked the first attempt at the mark since November.

Following its failure to decisively flip the mark, the asset declined by 30%. It shows notable selling congestion at the key barrier. The congestion is still present, as confirmed by the recent rejection.

With indicators flipping bearish on the 1-day scale, another massive decline may follow. If the altcoin fails to decisively break the barrier, a drop to $30 may take place within the next two weeks. Conversely, previous price action suggests a climb to $38 is likely once stability above $40 is established.

In a nutshell, while it is important for HYPE to break above $38, the chances of such happening within the next seven days are slim.

Nonetheless, the fibonacci retracement level offers insight into what may happen in the coming days. The asset is currently trading between the 23% and 0% mark. If it maintains trading around this region, a surge above $38 may follow.

However, slipping below $34.3 will confirm another bearish period. A decline to the 38% fib level at $31 may follow.

Nonetheless, the bollinger band suggests a possible dip to the SMA of $30 if they fail to keep prices above $34.

In other news, Hyperliquid volume has surged over the last few days. As a result, demand for HYPE increases, sending prices higher.

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