Impending Volatility in Hyperliquid (HYPE) Price Range as Bollinger Bands Constrict, Suggesting Support at $44 and Resistance at $50

Impending Volatility in Hyperliquid (HYPE) Price Range as Bollinger Bands Constrict, Suggesting Support at $44 and Resistance at $50

Hyperliquid's Resilience and Potential Upside

In the digital currency market, Hyperliquid (HYPE) has been showing resilience despite recent price drops. The platform's revenues continue to trend higher, indicating a strong underlying support for the token.

Currently, a supply zone has formed around the $50 resistance level, where volume tends to thin out. If momentum manages to build above this level, upside targets for Hyperliquid could stretch towards $55 to $60.

However, the price action of Hyperliquid has been steady, but no clear breakthrough has been achieved at the $50 resistance. The HYPE token is hovering just below this level, with sellers stepping in each time buyers attempt to push higher.

This could be a sign of a possible inverse head and shoulders pattern forming, as suggested by analyst CryptoMokado. If Hyperliquid avoids a fifth consecutive red day and manages a bounce, the setup could quickly shift towards retesting the $47 to $50 zone.

Interestingly, a buildup of $17.6M in short positions for Hyperliquid has occurred. These shorts may act as extra fuel if momentum returns for Hyperliquid. If the price clears the $50 neckline, it would confirm the inverse head and shoulders setup and force shorts to cover. A clean breakout above $50 would confirm bullish continuation for Hyperliquid.

The neckline of the inverse head and shoulders pattern is around $50, making it the key breakout level. If Hyperliquid can break and hold above $50 with strong momentum, it would confirm a bullish reversal and open targets towards $55 to $60.

It's worth noting that the "HYPE Assistance Fund," managed by Hyperliquid, uses around 97% of trading fees to buy back HYPE tokens from the open market. This significantly reduces the circulating supply and supports price growth on the Hyperliquid market. Since January 2025, the Fund holds about 29.8 million HYPE tokens valued over $1.5 billion, influencing the market by increasing token demand and rewarding long-term holders.

Moreover, the $44-$45 zone is acting as a crucial defense zone for buyers of Hyperliquid. The price is currently testing this support level. Strong fundamental inflows can provide a cushion against prolonged downside for Hyperliquid.

In conclusion, while the short-term trend for Hyperliquid is under pressure, the token has historically found its footing before a slide extends too far. The main target to watch for Hyperliquid remains a breakout above the $50 neckline, which could signal a bullish reversal for the token.

Read also:

• Understanding Hemorrhagic Gastroenteritis: Key Facts
• Stopping Osteoporosis Treatment: Timeline Considerations
• Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
• Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan