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Hyperliquid (HYPE) Price Pulls Back After Strong Rally — What’s Next?

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  • Hyperliquid (HYPE) pulls back after rallying from $10 to over $18, dropping 2.97% in the past day.
  • Technical indicators like BBTrend and MACD show weakening bullish momentum and a possible short-term downtrend.
  • Analysts advise caution, suggesting traders wait for confirmation of a trend reversal before re-entering the market.

After an impressive rally over the past few weeks, Hyperliquid (HYPE) is displaying signs of a pullback. The latest TradingView data shows that HYPE currently trades at $17.83, after dropping 2.97% in value in the last day.

During its price uptrend, HYPE moved from about $10 to over $18. However, the coin’s market is currently experiencing a cool off, with sellers gaining more control.

Source: TradingView

Weakening Buying Pressure Hints at Possible Hyperliquid Price Decline

According to the technical indicators, the coin’s trading volume is displaying signs of weakness, even though it’s still strong at the moment.

The decline in volume suggests that the bullish momentum from the previous uptrend is starting to lose steam. While its relative strength index (RSI) at the time of writing is at 57.70, which is still within the neutral range, it’s gradually moving towards the overbought region.

This shows that there’s a drop in buying pressure, and the cryptocurrency’s price could continue to drop in the short term if selling pressure continues to rise.

In addition, the BBTrend indicator has flipped from green to red bars, suggesting that bearish momentum is starting to build. This indicator usually measures the strength and direction of an asset.

With a current value of -0.431, the BBTrend proves that a downtrend is happening, even though it could only be for a short term. It is important to note that a temporary pullback is normal after a strong price uptrend.

Such price drops usually allow an asset’s price to stabilize before starting to move in its next direction, which could be up again or down. Analysts advise traders seeking to enter the market to wait for a reversal before making any move. 

For instance, signs that the pullback is ending include the BBTrend turning green again or the RSI dropping closer to 40. However, if the sellers maintain their momentum and the price drops below its next crucial support level, the coin continues in its downward direction. The $16 price level is HYPE’s next crucial support level.

MACD Signals Fading Bullish Momentum for Hyperliquid

In addition, the MACD also confirms signs of a slowing buying momentum for Hyperliquid. While the MACD line (blue) is still above the signal line (orange) (which is usually a bullish sign), the distance between these two lines is getting smaller.

When this happens, it is a sign that an asset’s (in this case Hyperliquid) bullish momentum is gradually weakening. The MACD histogram bars have also been decreasing in size.

These suggest that factors causing the rise in the price of HYPE are starting to weaken.

Solana Price Explodes Past Key Resistance as Long/Short Ratio Hits 30-Day High – More Upside Ahead?

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  • Solana’s price jumps 40%, breaking past major resistance after rebounding from $95.23.
  • Long/short ratio peaks at 1.06, showing increased trader confidence in a bullish rally.
  • MACD crossover and RSI at 53.49 confirm strong buyer momentum and bullish sentiment.

After hitting a 1-year low of $95.23 last week, Solana’s (SOL) price is now up by 40%. At the time of writing, the coin’s long/short ratio has hit a 30-day peak at 1.06, suggesting that there has been a massive increase in the demand for long positions.

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Long/short ratio. Source: Coinglass

Traders Turn Bullish on Solana as Long/Short Ratio Climbs Above 1.0

This ratio compares the number of long positions (traders believing a rise in SOL’s price will happen soon) with the number of short positions (those convinced SOL’s price will decline soon).

If this ratio is below 1, it shows that there are more traders convinced that the asset’s price would drop, a bearish sentiment. In contrast, a ratio higher than 1 indicates that more traders expect the coin’s price to rise – a bullish sentiment.

With this ratio above 1 at the moment, SOL traders are convinced that SOL’s price will keep rallying.

Solana Sets the Stage for a Breakout as Bullish Momentum Builds 

SOL’s current price gain is notable given that the coin entered the consolidation phase after rallying from its 1-year low. A consolidation phase is a cool-off period before an asset starts the next leg of its bullish run.

The technical indicators are also bullish. At the time of writing, the MACD is bullish, with the MACD line (blue) crossing over the signal line (orange).

The crossover indicates a rising buyer momentum and confirms that the coin’s current price gains could continue over the short term. Another confirmation of the bullish bias is the increasing height of the green histogram bars, which suggests increasing strength.

In addition, the RSI at 53.49 indicates bullishness. An RSI above 50 is generally an indication of bullishness.

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SOL’s price chart. Source: TradingView

Solana‘s price is currently $131.04 according to TradingView data. Should buyers maintain their momentum, the coin could break out of its current pattern and rise towards $147.6, its next crucial resistance.

However, if the buying momentum weakens and the sellers take over to make profits, SOL could drop to its next crucial support of $103.17 or further drop to $95.54.