HYPE, the native token of the decentralized exchange Hyperliquid, has seen a significant rise in the cryptocurrency market, with its price increasing by 17% in the past 24 hours. This notable increase has positioned HYPE above its 20-day Exponential Moving Average (EMA), marking a key shift in market dynamics and suggesting the possibility of a continued upward movement.
A review of the HYPE/USD daily chart indicates that HYPE has successfully moved above its 20-day EMA, a metric that highlights an asset’s average price over the recent 20 days with an emphasis on current trends. Such a breakthrough often suggests a momentum shift, indicating a rise in bullish interest. This development implies that HYPE's previous resistance is potentially transforming into a support level, with buyers actively maintaining the price above this threshold.
The previous resistance established by HYPE’s 20-day EMA at $23.12 appears to have become a support base. If this support level holds, it will reinforce the ongoing uptrend, potentially allowing HYPE to gain further. Furthermore, the Chaikin Money Flow (CMF) indicator for HYPE confirms increasing demand.
After eight negative days, the CMF turned positive on Thursday, pointing toward a shift from a bearish to bullish trend as accumulation builds. Currently, the CMF indicator stands at 0.02, signifying increased demand for the token.
The CMF indicator assesses money flow within a market, with values above zero indicating substantial buying pressure and suggesting capital influx.
Should the accumulation of HYPE continue to strengthen, the current rally may extend. This could lead its price to break past the $27.53 resistance and reach $30.37, a level last seen in December.
Conversely, heightened profit-taking could challenge this optimistic view. In that event, HYPE might test the support at the 20-day EMA of $23.12, and failing to maintain this level could result in a price dip to $18.50.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.