Hyperliquid’s Make-or-Break Moment: Will it Shatter the $42.24 Resistance?
Hyperliquid is at a critical juncture, testing a highly confluent resistance zone at $42.24. This level, which previously served as a strong support, now poses a significant challenge for the bulls. The outcome of this test will determine the direction of the trend for the coming days and weeks. With several technical indicators converging at this point, including the value area high, 0.618 Fibonacci retracement, and VWAP SR from the all-time high, the stakes are high.
Key Technical Points to Watch
The $42.24 level is a crucial resistance zone, with multiple technical indicators pointing to its significance. A failure to regain this level would confirm a deeper correction, targeting $32, while a breakout would invalidate the bearish structure and restore bullish momentum. The reaction at this level will be pivotal in determining whether the bulls can regain control or the bears will resume their dominance.
Resistance and Support Zones
The main resistance zone is clearly defined at $42.24, with the value area high, 0.618 Fibonacci retracement, and VWAP SR from the all-time high all converging at this point. On the other hand, the bearish breakdown target is set at $32, which corresponds to a value area and liquidity zone. The market’s decision point is clear: the recovery or rejection of the $42.24 level will define the next trend phase.
What’s at Stake?
The recent rally in Hyperliquid has brought it directly to the technical confluence zone at $42.24. If the bulls can recapture and close above this level, the bearish structure will be invalidated, and Hyperliquid can target higher price zones. However, if this level is not recaptured, it will likely confirm a bearish retest, setting a lower high and opening the door to further downside. In the event of a rejection, the price is expected to move towards the value area and 0.618 retracement of the previous move, near $32.
Implications of a Breakout or Rejection
A breakout above $42.24 would have significant implications, potentially leading to a continuation of the upward trend and new highs. On the other hand, a rejection would increase the bearish prospects, with the potential for a further decline if the support at $32 is lost. The next daily closures will be crucial in determining the direction of the trend. Holding above or below the $42.24 resistance level will decide whether Hyperliquid enters a deeper correction or repeats its strength for further upward momentum.
What to Expect in the Upcoming Price Campaign
If Hyperliquid fails to reject the $42.24 level, a rotation towards $32 is likely. However, if the bulls manage to break and hold above this level, the dynamics can continue, with the potential for new highs. The dissolution of this zone will likely indicate the start of a new trend phase, with a crucial breakout or breakdown having long-term effects on Hyperliquid’s chart structure. As the market waits with bated breath, one thing is clear: the outcome of this test will have significant implications for Hyperliquid’s future price action.
