Can HyperLiquid Overcome Its Struggles and Bounce Back?
After weeks of struggling, HyperLiquid has shown early signs of a rebound. The cryptocurrency, which was once in a sharp decline, has gained 8% in the past few days. That’s promising, right? But the road ahead is not easy. Resistance levels and weak market inflows remain hindering its development. Let’s take a closer look at what’s going on and why it matters.
A glimpse of the hype
HYPE’s technical indicators are hinting at a possible reversal for the first time in a while. MACD has turned bullish. In short, HyperLiquid is showing growing momentum and if enough buyers come on board, it could push the price higher. But here’s the thing: investor confidence remains shaky.
Chaikin Fund Flows (CMF), which tracks capital inflows and outflows, was below zero. This is a red flag. Without stronger financial inflows, any recovery is likely to fizzle out before gaining real momentum.
Despite HYPE’s recent resurgence, it remains at a crossroads. The price is hovering above support at $19.47, but a break above $23.20 is needed to convince investors of continued gains.
Resistance levels can make or break a rally
That’s the problem. If HYPE is unable to break the $23.20 resistance soon, a fall back to the $19.47 support is possible. This is dangerous. Losing this level could remove what little confidence investors have left, making further losses more likely.
On the other hand, if $23.20 turns into a solid support level, it could trigger a price increase towards $29.85. But without new inflows of capital or more active participation from investors, that dream may remain out of reach.
what to expect
HYPE’s recovery is more than just a chart or a percentage. It’s about trust. Investors need to see real momentum behind capital inflows before plowing back in. Until then, progress will be slow.
The signs of technology are there, but they are not enough on their own. Stronger market support is crucial. If HyperLiquid can’t attract it, the current gains could quickly disappear.
