Here’s How Price Action On Tuesday Could Send HYPE Above $30

HYPE is trading at $25.8 at the time of writing, 2% above its opening price. Although it’s currently grappling with slight selling pressure, a green close is almost inevitable.

The altcoin has been range-bound over the last seven days, trending between $24 and $25.4. It broke out on Friday, surging above $25.8, and has since struggled to keep prices above $25.

Nonetheless, the 1-day chart indicates that the asset is currently trading above its previous consolidation channel and may be gearing up for a massive breakout. In the early hours of Monday, it broke above $26,  peaking slightly higher before correction. Its recent move indicates that speculations of further uptrend may already be playing out.

A closer look at the chart shows that Hyperliquid is trading in an ascending structure.  A bullish close on Monday will keep the trend intact. However, the altcoin is nearing a make-or-break situation that may play out on Tuesday.

4-Hour Chart Signals Breakout

The 4-hour chart shows the $26.3 hike met strong rejection, as the asset printed a red candle. It is also worth noting that it tested bollinger’s upper band before retracing. The altcoin’s next stop may be the lower band.

However, the bulls must prevent a sharp decline, as the asset may slip back into the channel it traded in last week. Conversely, forcing a rebound at the current price will guarantee a breakout from the bollinger bands.

In a nutshell, the bulls must defend the $25 support or risk further decline. Staging a buyback above the current price will see HYPE register a new seven-day high.

In either case, a breakout is imminent. Which means that trading action on Tuesday could have far-reaching consequences. The bollinger bands are narrowing as volatility reduces. Its contraction typically signals an impending price breakout.

However, the moving average convergence divergence is negative, indicating a high likelihood of further decline.

HYPE is Positive on the 1-day Timeframe

MACD had a positive crossover last week. The current upward structure is proof that prices are improving since the divergence. The metric suggests the uptrend may continue, as it prints no new signals and shows no signs of halting its upward movement.

However, the bollinger band suggests Tuesday’s price action will be crucial for HYPE. A closer look at the chart shows that since the start of November, the middle band has acted as resistance. The asset has since struggled to break above, retracing after a few brief breakouts.

The latest happened earlier in December when the altcoin retraced the same day it broke the SMA. HYPE is approaching this key level again. It will either flip the mark or retrace on Tuesday.

Either of these two scenarios will play out. For a bullish outcome, the asset breaks above the metric and ends the day above it. The token closing above the SMA would signal further increases. Its next price target may be bollinger’s upper band at $30.

On the other hand, retracing below the mark could result in a steeper decline. The chart shows the token tested the lower band every time it failed to flip the SMA. Which means HYPE could retest $22 in the coming days.

The post Here’s How Price Action On Tuesday Could Send HYPE Above $30 appeared first on CoinTab News.