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HYPE’s price to $17 next? – Yes, but its hike will depend on…

2min Read

The liquidation map showed that a HYPE short squeeze was likely in the coming hours, and traders should be wary of volatility.

Strong demand for HYPE drove a 76% rally in 10 days, more likely to follow

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  • HYPE was recovering well and could challenge the $17.15 resistance soon and flip it to support.
  • The liquidation map showed that short liquidations were denser and closer than the long liquidations.

Hyperliquid [HYPE] saw its Total Value Locked (TVL) shrink from $636 million in the first week of March to $230 million a month later, according to data from DefiLlama.

One of the drivers of this exodus of capital was the way the Hyperliquid platform handled the JELLY saga.

The platform saved its Hyperliquid Provider vault and wiped out its negative PNL that came as a result of the manipulation of JELLY and a trader’s long liquidation that Hyperliquid inherited.

In the process, the legality of their course of action and the decentralization of Hyperliquid were questioned.

HYPE could see a short squeeze in the near term

HYPE 12-hour Chart

Source: HYPE/USDT on TradingView

The trading volume of the platform remained fine and was under no immediate threat. This also meant the demand for HYPE was healthy. The token’s breakout above the descending channel a week ago has erased all the losses the token made after the 24th of March.

It was approaching the $17.15 resistance that marked the swing high before the descending channel. On the 12-hour chart, HYPE has had a bullish structure since climbing above the lower high at $12.

Therefore, the 1-day and lower timeframes have a bullish structure, and a move beyond $17.15 would signal another leg higher for Hyperliquid token prices. This outcome appeared likely if Bitcoin [BTC] held its nerve.

The A/D of HYPE made a new high, rising beyond the March highs. The RSI was also above 60 to signal strong upward momentum.

Hyperliquid Liquidation Map

Source: Coinglass

The liquidation map showed that some short-term volatility was possible. The short liquidations overhead were higher leverage positions, and had a higher estimated liquidation leverage closer to the price.

In particular, the $17, $17.3, and $17.45 levels are short-term targets due to high leverage liquidations clustered in these areas.

Traders should be cautious of a false breakout past $17.15, driven by short liquidations, as it could reverse quickly. A retest of the $17 zone as a demand level could present a long opportunity for traders.

Monitoring BTC’s movement will be crucial to understanding market-wide sentiment and confirming potential price direction.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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