After falling below $30 last week, Hyperliquid (HYPE), the native token of one of the fast-growing decentralized exchanges (DEXs), managed to recover by 2% on Thursday, positioning itself to benefit from this latest upward move in which the leading cryptocurrencies have recovered important levels.
HYPE ready for a new recovery
Market analyst OxMakeSense has done that marked the potential roadmap for HYPE to reach $50 in the near term, just below the all-time high of $59, indicating that the token is starting to show the first signs of a significant shift. He emphasizes that the coming levels are filled with untapped liquidity, which could facilitate a climb for HYPE.
After a month of pressure, the analyst claimed that the asset recently saw its first solid recovery, indicating that selling pressure is starting to ease and market reactions are gaining momentum.
OxMakeSense identifies a critical checkpoint for Hyperliquid in the $37-$38 price range, highlighting where the last outage occurred. If HYPE can regain these levels, he suggested it could lead to a squeeze on ‘captured sellers’.
Furthermore, crossing the $38 threshold would open the chart to an immediate move towards the $41-$42 range, an area described as ‘thin’ and where little major resistance remains from previous sell-offs.
Analyst warns of potential retracement to $25
In its social media analysis, OxMakeSense noted that the momentum pivot is at a significant $44 level. He stated that strong trends usually start with the recovery of mid-levels such as these.
Should HYPE convert this resistance into support, it is expected to accelerate further. Above $44, HYPE would enter a clearer trajectory, with targets targeting $48 and ultimately $50, where there is a significant amount of untapped liquidity.
However, not all analysts share the same bullish outlook. Fellow analyst Crypto TXG has expressed concerns about HYPE’s recent performance, noting that it lost the $35.8 level and hit a temporary low near $28.5.
Although HYPE has reversed the trend, it is currently testing the $35.8 mark from below, which acts as a barrier. If HYPE can break this resistance, the next target would be $42.3. Conversely, if the price fails at $35.8, another pullback could occur, potentially testing the $28.5 support again in a more decisive manner.
To add to the cautious sentiment, market expert Ali Martinez has also done so indicated that if the token retests the failure zone, there is a possibility that it will reach the $25 mark again. This suggests that, despite the recent rebound, a short-term recovery of around 28% could be in store.
Featured image of DALL-E, chart from TradingView.com