Hyperliquid’s HYPE token has captivated the cryptocurrency market since its groundbreaking launch on November 29, 2024, which marked one of the largest airdrops in crypto history. With an initial distribution valued at over $1.6 billion in circulation, this token reached a new all-time high in 24-hour trading volume on December 6 but fell to $159 million at press time. However, potential investors should look into the technical indicators discussed in this article to observe possible signs of sudden price action.
Can HyperLiquid Build On Airdrop Hype?
On almost every front, the Hyperliquid has displayed remarkable price performances that back up the current hype behind it. The platform’s Perp DEX has demonstrated remarkable traction, processing over $494 billion in total volume since March 2024 and securing the 4th position in 24-hour DEX volume, according to CoinMarketCap. The intense trading activity reaffirms the platform’s growing adoption and could be a springboard for HYPE’s valuation.
The token’s distribution model, which allocated 31% of the total supply to the community while excluding private investors and centralized exchanges, has created a unique market dynamic. This democratic distribution approach, combined with the 38.88% reserved for future emissions and community rewards, suggests a long-term focus on community-driven growth.
Technical Analysis for Hyperliquid: $20 Within Reach?
The price chart shows HYPE trading at $17.45, following a remarkable 445.46% surge over the past month. The recent price action displays a consolidation pattern near these levels, suggesting the market is digesting its previous gains. Currently, the technical indicators observed in the chart taken across 30 days with 30-minute intervals hint at a bright future for the trajectory of HYPE’s valuation.
At press time, the token’s Relative Strength Index (RSI) reads at 45.29, positioning itself below the 50 mark in neutral territory. A reading like that usually implies that the token has moved away from overbought conditions and might be finding equilibrium. Traders should note that this neutral RSI reading could present opportunities for both sides of the market, though the declining RSI trend suggests some weakening momentum.
On the other hand, The Moving Average Convergence Divergence (MACD) indicator shows subtle bearish signals, with readings of -0.023, -0.063, and -0.040 for the MACD line, signal line, and histogram, respectively. The convergence of these lines near the zero level suggests decreasing momentum, though not necessarily indicating a strong directional move yet.
As a key level for potential cases of breakout or breakdown, traders should keep their eyes glued to the $17-18 range.
HYPE Trading Chart Showing Key Technical Indicators. TradingView
The current consolidation phase might present opportunities for range-bound trading strategies. However, given the token’s relatively young market history, traders should not downplay the importance of proper techniques for risk management.
It is not a stretch to say that HYPE may be preparing for its next big move, especially looking at the token’s neutral technical indicators and the latest developments on the platform. However, it would be wise for traders to watch for increasing volume and decisive breaks from the current range as potential triggers for new trending moves.
