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- HYPE surged by 6% after retesting a key demand zone in less than 48 hours.
- Long/Short Ratio and 90-day delta pointed to a potential reversal.
Hyperliquid [HYPE] has bounced back with a 6% gain after a successful rejection at a key demand zone at around $30.67. The demand zone has seen three separate rejections in the last two weeks alone.
The trend suggests that the level is being strongly defended by buyers. On the daily chart, HYPE prices have bounced back in each rejection, which shows strong underlying demand, with the latest bounce being the most optimistic.
Interestingly, the altcoin’s stochastic RSI, one of the key momentum indicators, was in the oversold region at press time, adding to the likelihood and magnitude of a potential price reversal.
Historically, this region has marked HYPE price reversals, especially when followed by strong buying pressure.
Source: TradingView
Momentum indicators signal a bullish reversal
The bullish price movement is supported by positive HYPE on-chain data.
The 90-day Cumulative Volume Delta, which measures the difference between buy and sell volume, indicated buyer dominance.
As the delta rises over time, it signals stronger buy orders entering the market, reinforcing the ongoing bullish reversal.
Source: CryptoQuant
Market sentiment metrics also lean bullish. The altcoin’s Long/Short Ratio stood at 1.04 at press time, suggesting that HYPE bulls are still in control.
Though higher by a little, the difference in crypto’s volatility can be enough to bring about additional price action with other bullish signals.
Source: Coinglass
Will HYPE break above $40?
With the trend on its side, HYPE could be setting itself up for yet another challenge of the $40 barrier. However, investors would need to observe the volume on the market and the prevailing sentiment.
If the buying pressure continues and volume picks up, a $40 target could be on the cards.
Still, caution is advised. Unless bulls can continue the present momentum, HYPE may return to $30–$32 for another retest before doing anything definitive.
Meanwhile, the combination of an oversold stochastic RSI, a dominant buyers’ trend, and a Long/Short Ratio in its favor is a positive go-ahead for HYPE traders and investors alike.
