Hyperliquid Breaks $19.2 Resistance, Surpasses TRON Fees by 5.3%
1min read Hyperliquid, a prominent digital asset, recently broke through the $19.2 resistance level, marking a significant milestone after an 11-day consolidation phase. This breakout was accompanied by a bearish momentum divergence, as indicated by the 4-hour chart’s bearish divergence and the liquidation heatmap. Despite the bearish signals, Hyperliquid managed to flip the $19.2 level to support, setting the stage for potential further gains.
The digital asset's recent performance has been noteworthy, surpassing the fees generated by tron over a 24-hour period. On April 26, Hyperliquid generated $2 million in fees, compared to TRON’s $1.9 million in the preceding 24-hour span. This fee gap can be attributed to the noticeable difference in on-chain activity between the two assets. Earlier reports indicated that retail traders were taking a bullish view on Hyperliquid, with the token retesting the $17.34 level before rallying beyond $19.24. At the time of reporting, the $19.24 level served as support, suggesting potential for further price increases.
Analysts have plotted a set of Fibonacci retracement and extension levels based on the drop from $17.34 to $9.29. Over the past two weeks, Hyperliquid prices consolidated beneath the $19.24 level, which is the 23.6% extension level. During this consolidation, volume metrics were slightly bearish, with the Chaikin Money Flow (CMF) dipping below -0.05 and the Accumulation/Distribution (A/D) line moving sideways. However, the bullish breakout on Wednesday alleviated concerns from the volume side, as the CMF surged to +0.28 and the A/D indicator saw a sizeable uptick. Despite this, the Relative Strength Index (RSI) presented traders with some doubts, as it made a lower high while the price made a higher high, indicating a classic bearish divergence signal.
The 3-month liquidation heatmap showed a cluster of liquidation levels around $21.35-$22.3, with the $22.3 level being the 61.8% Fibonacci extension level. This makes it an attractive price target for swing traders. However, the 2-week liquidation heatmap suggested that a rally to $22.3 might not be quick, as the liquidity cluster at $20.4 marked a magnetic zone that might need to gather more liquidation levels before being tested. The liquidity present at $19.45 was noticeably higher than what was seen at $20.4 at the time of reporting.
Combined with the H4 bearish divergence, it appeared likely that Hyperliquid would consolidate around the $19.2 region for a few more days before the next rally. The bearish signals and the potential for further consolidation suggest that while the $22 price target is possible, it may not be achieved in the immediate future. Traders and investors should closely monitor the price action and volume metrics to gauge the next move for Hyperliquid.
