Hyperliquid formed a bullish divergence despite falling below a key support zone- is this a sign of a trend reversal, or increased volatility?
Hyperliquid has fallen back into the range that stretched back to late May, and the failure to defend $38 meant that further price losses were likely.failed to break out past the $41 range high in mid-July and has fallen back into the range that it has traded within since late May.
was below the mid-range level at $37.9. It appeared to be retesting the $38 region as resistance at the time of writing. The bearish case was made stronger by the OBV’s descent over the past two weeks.The retracement into the range was an early sign that HYPE would go lower, and this has come true. Now, the fall below the mid-range level was another sign of bearish continuation. Hence, a Bitcoin price bounce was possible, which in turn could lead Hyperliquid token prices to bounce back above the mid-range resistance. Traders should brace for volatility, but the trend was bearish. Therefore, their bearish outlook would be justified, and a move to the range low at $31 remained likely.The path to the range low might not be a straight like downward. The 4-hour chart revealed a bullish divergence on the RSI, marked in orange.The H4 market structure was bearish, and the $38 region has been established as resistance over the past 24 hours. A bearish outlook would be feasible until HYPE bulls flip $38 to support and drive prices above $39.2. Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinionAkashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.Subscribe to get it daily in your inbox.
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