All about HYPE’s 3.5% hike after OTC sale and what’s next for altcoin

After a $329 million OTC sale, Hyperliquid [HYPE] rose by 3.48% in the last 24 hours to hit $89.55. Selling 3.75 million HYPE tokens to one institutional buyer eased short-term selling worries, helping the token outperform the wider crypto market.

However, at press time, the move was yet to gather enough momentum to confirm a stronger breakout. With HYPE now testing the key $89.6-level, the daily and 4-hour charts suggested the token could consolidate in the near term before its next move.

HYPE’s daily chart may be cautiously bullish

HYPE has traded within the 23.6% Fibonacci level zone since mid-September. After recently retesting this level as support, the bulls managed to reclaim it and push the price back towards $90. While the recovery remains intact, the move is yet to show enough strength to point to a clear breakout, suggesting HYPE could remain in a consolidation phase for now. 

The indicators also seemed to be leaning bullish. However, momentum still remains modest. The RSI stood at 54.28 at the time of writing, indicating that buyers had the slightest edge without the stronger momentum associated with a decisive trend move.

Furthermore, the OBV has maintained an overall uptrend before flattening recently. This suggested that buying pressure may be losing some of its recent momentum.

HYPE tests key support on the H4 chart

The 4-hour chart also agreed with the cautious outlook. On the H4 timeframe, HYPE was trading around the 50% Fibonacci level and was attempting to reclaim the $89.6 area. This had acted as support since mid-September before breaking lower towards the end of the month.

The RSI was at 52.09 at the time of writing, just above the neutral 50-mark. Also, the OBV flattened after a sharp decline, hinting that selling pressure may have eased.

As long as HYPE can reclaim and hold $89.6, the $92-94 zone could come back into focus. A failure to hold this level, however, could keep the token in consolidation and expose it to further downside.

Final Summary

• HYPE’s recovery has been cautiously bullish, but weakening momentum on both timeframes leaves room for consolidation.
• Holding $89.6 could put the $92-94 zone in focus, while losing the level would weaken the short-term recovery.