Hyperliquid (HYPE) has been consolidating in an ascending triangle pattern since its debut on Coinbase on February 5.
The token managed to break out on May 20 and rebounded explosively all the way to $75 before retracing and explosively rebounding off the triangle support at $53. As a result, it left behind a market imbalance of between $57 and $63.
At the time of writing, HYPE was testing the imbalance zone after an aggressive correction. This happened as it swept through liquidity at the $75 resistance level. The token is currently building bullish momentum with the next target being the $77 resistance zone.
Why are traders watching $77?
The trading activity of the Hyperliquide network is notably aligned with the bullish technical structure of HYPE.
Trading volume saw a significant increase over the past four days, highlighting that investors were taking more long positions to capitalize on the expected return to the liquidity point at $77.
Liquidity Cluster at $77 Affirms This as a Key Target
Zooming in on the HYPE liquidation heatmap data, several large liquidity pools totaling $10 million are at resistance around $77. These clusters support the price level as a crucial reference point for a bullish outlook.
In most cases, liquidity clusters act as price action magnets on which prices oscillate. For HYPE, the same scenario could come into play.
Buyers and investors have already started accumulating more positions to target the full liquidation at the resistance level, as shown by the increase in trading volume.
Will HYPE’s bullish structure hold?
All technical indicators align with HYPE’s bullish bias.
HYPE is trading above the major exponential moving averages (EMA), increasing the likelihood of a possible continuation of an uptrend.
At the same time, the token’s stochastic RSI is only bouncing off an oversold region. This action confirms the current imbalance zone as a key turning point for a possible price reversal.
Final summary
- HYPE rebounds from a key market imbalance after defending ascending triangle support, keeping the broader bullish structure intact.
- Increasing trading volume and a $10 million liquidity cluster near $77 are drawing traders’ attention to the next potential resistance area.
