- HYPE extended its mid-week rally to 20% after Binance U.S listing update
- The $30-price level could become a buying opportunity in case of a pullback
On 2 June, Binance U.S announced that it would soon list Hyperliquid [HYPE] for spot trading. The altcoin surged by about 7% after the update and extended its mid-week rally to nearly 20%.
At the time of writing, HYPE had jumped from $31 to $37.85 since Sunday. In fact, measured from its April lows, the altcoin was up a whopping 300%.
So, can it still offer new trading opportunities?
HYPE nears price discovery zone
Source: HYPE/USDT, TradingView
The altcoin hit an all-time high of $42.2 on KuCoin exchange last December. At press time, it was close to retesting this level. In May, HYPE tagged $40, but the RSI was overheated, triggering a cool-off to $30.
However, in June, the renewed risk-on sentiment and the Binance U.S listing triggered a 20% rebound. However, once again, the RSI seemed to be on the verge of flashing an overheated signal.
Besides, the OBV (On Balance Volume) was at a resistance level formed in February. Unless the OBV surges higher, HYPE may cool off again. If so, the potential pullback could offer new buying opportunities at $30 (this week’s springboard) or the 50-day EMA (Exponential Moving Average, white zone).
The 50-day EMA, around $27, was also above the 50% Fibonacci retracement level, making it a potential inflection point in case of an extended retracement. In such a scenario, $40 would be the take-profit level, offering about 28% or 50% potential gains.
Why the $30 level is crucial
Source: CoinGlass
The aforementioned idea was supported by CoinGlass’s 2-week liquidation heatmap. There appeared to be a massive liquidity and price magnet area around $28- $30 (bright orange levels). These were leveraged longs that could attract the price action in case of a liquidation hunt, offering discounted re-entry for new buyers.
However, this bullish set-up will be invalidated if HYPE drops below $30 and the moving averages.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
