Another rally could be on the cards for HYPE.
HYPE’s price action is again under the bulls’ control.
The altcoin posted strong daily gains after rejecting the ascending trendline support near $28. Buyers stepped in decisively at that level. As expected, the reaction was sharp and at press time, the structure was intact.
In fact, the token’s trendline seemed to be holding strong too. The support defence initiated a short-term shift in HYPE‘s bullish run momentum
The $28-zone has historically acted as a clear line of defence against further dips. However, while the sellers pushed the price lower, the market bulls responded immediately.The price rebound at the point of demand around $28 suggested that long position takers were active along the rising support. Usually, when ascending trendlines hold during pullbacks, it is often a sign of continuation not breakdown.
In HYPE’s case, the Stochastic RSI was just bouncing from an oversold zone too – Further affirming that the bullish run could be far from over.
Source: TradingView
Lower fees can change behavior
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Still, a follow-through buying phase matters.
According to the recent on-chain data, HYPE’s transaction fees have dropped sharply lately, falling to around $2 million. This hinted at a lower cost of acquiring the token.
Consequently, a corresponding trading activity surge can be projected in the near term. This could instil more volatility into the market and accelerate the prevailing bullish momentum.
Source: Messari
Liquidity cluster at $37.20 in focus
That’s not all though as above the press time levels sits a notable liquidity cluster worth approximately $1.32 million at around $37.20.
As has historically been the case, markets are drawn to liquidity. When volatility expands, the price often gravitates towards these zones. If bullish momentum continues to build, this cluster can act as a near-term magnet.
A move towards $37.20 would not only test liquidity. Instead, it would also confirm strength above the recent support defence.
Source: Coinglass
What’s next for HYPE?
HYPE has defended its trendline support. Fees have dropped and volatility may expand too.
In other words, all the factors for continuation are present. If buyers maintain control and trading activity increases, the $37.20 liquidity pocket could be the next logical destination.
For now though, bulls hold the edge. Despite the fact that momentum needs confirmation.
Final Thoughts
- HYPE bounced strongly from the ascending trendline support near $28. A $1.32M liquidity cluster at $37.20 could attract the price if momentum builds.
Next: BNB/ETH up 7% – Early sign that Binance Coin could lead L1s in Q1?
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