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Low Hype Demand Follows Hyperliquid’s High DEX Volume – Can Bulls Change This?
Hyperliquid’s [HYPE] impressive performance over the past week has been met with a stark contrast in demand, as its low hype demand follows high DEX volume. The question on everyone’s mind is whether bulls can change this trend and propel the asset forward.
The recent price action saw Hyperliquid breach the mid-range resistance at $39.1, only to be rebuffed by the market. Despite this setback, traders would be wise to consider the asset’s bullish structure that emerged after it went above the $37.25-level on June 28th.
While some may view this as a concerning sign, it is essential to note the decentralized exchange (DEX) has posted remarkable trading volume comparable to levels seen in February. This comes alongside an increase in new user count over the past two months. It would seem that this data could potentially drive a resurgence in price.
Taking a closer look at the technical analysis, we can see that the 4-hour chart indicates a bullish market structure for Hyperliquid after breaking above the $37.25-level. This, combined with an unsuccessful attempt to breach the $39.12 local top, is indicative of weak bullish sentiment and dwindling trading volume.
The Relative Strength Index (RSI) also showed some signs of bullishness, but without sustained demand, the momentum could easily reverse. The asset has been trading within a range from $31 to $44.8 since late May, and it’s crucial that bulls can defend the current mid-range level at $37.9 as support.
To see a move towards the range high at $44.8, buying volume must increase. Additionally, Bitcoin [BTC] could significantly influence market sentiment and ultimately impact HYPE’s price movement.
In conclusion, Hyperliquid’s low hype demand does not necessarily mean it cannot continue its upswing. What is required now is a hike in buying volume to validate this new bullish structure and provide the impetus for further growth.
Source: ambcrypto.com
