Hyperliquid’s price is testing the $49 resistance level once again after being rejected multiple times here. The token could crash to the $35 support level.
Since late September, Hyperliquid’s price has been crashing. The token crashed from as high as $58 to $35 within about a month. However, after falling to the resistance at $35, the bulls saw a chance and sneaked into the market, buying the token at a discounted price.
After being supported by the bulls for more than a week, the token is now on a rally. From $35, HYPE has recovered and is now priced $47 after gaining around 33% within the past week. Despite the trading volume of the token dropping by 11% to $547 million, Hyperliquid’s price has been on an uptrend.
However, this uptrend has been met with some resistance as HYPE is currently struggling to get past the $47 resistance level. Even in the event that the token smashes past the $47, it has another hurdle just above it at $49. This level is a stronger resistance level than $47.
A crypto netizen who goes by the pseudonym Ali stated, “Hyperliquid $HYPE could see a short-term pullback as the TD Sequential flashes a sell signal!”
The TD Sequential is an indicator that is designed to identify when a price trend is exhausted. When this happens, the rally is coming to an end, or a sell-off may be about to reverse. It doesn’t predict price direction early; instead, it signals possible turning points after a trend has run too far, too fast. So is Ali right by saying the buying is over?
Well, Ali could be right. When closely observing the above chart, HYPE tested the $49 resistance level quite a few times. When HYPE closed in on this resistance level, it was rejected 5 times out of the six times. So, the chances of HYPE getting rejected this time around are also pretty high based on historic data. Given that the token is rejected again, it will crash again to the $35 support level.
