Usman Salis
HYPE has reached a critical juncture on its 12-hour chart. Following a strong rally to $59.26, the token has pulled back and is now testing a key support zone between $55-$56. This moment will likely decide whether buyers can regain control for another push higher or if momentum shifts toward a deeper correction.
HYPE Price Action: Critical Support Test
The chart reveals HYPE's impressive climb from early September, surging from below $45 to peak at $59.26. After meeting resistance at these highs, the price retraced but has found tentative support around the $55-$56 area, which now serves as a crucial breaker zone. RC Markets famous trader highlighted that maintaining this level is essential for any renewed upward momentum.
Immediate resistance remains at $59.26 where the recent rally stalled, while the current $55-$56 zone represents the key battleground. A failure to hold could see prices drift toward $52. The strong upward momentum from earlier this month suggests underlying demand persists, though the recent pullback highlights natural profit-taking pressures.
Market Drivers Behind HYPE's Movement
HYPE's recent surge reflects the broader altcoin momentum as capital rotates into smaller tokens. Social sentiment, speculative interest, and exchange activity have all contributed to the sharp appreciation. However, like most altcoins, HYPE remains closely tied to Bitcoin's performance and overall market sentiment.
The current retracement follows a typical pattern after steep rallies, where profit-taking creates natural resistance levels. This makes the current support zone particularly important for gauging short-term direction.
Key Levels to Watch
Should HYPE successfully defend the $55-$56 support zone, the path back to $59.26 remains viable. A solid bounce from these levels could reignite bullish sentiment and potentially target the $60-$62 range. However, a breakdown below $55 would shift the outlook bearish, exposing the token to further declines toward $52 or potentially $50.
The coming sessions will be telling as traders watch whether this key support level can hold against selling pressure.
Usman Salis
