Hyperliquid (HYPE) is rebounding from a $22 decline as the key recovery zone holds

• Hyperliquid (HYPE) is rebounding from its recent dip and showing renewed buying momentum around key support.
• HYPE’s double top pattern was confirmed, leading to a short-term decline followed by a recovery rally.
• Market watchers noted that HYPE bounced back from a long-term bearish channel, indicating a potential uptrend.

Hyperliquid (HYPE) is once again making headlines due to recent market action that saw a move in line with what was expected in the market. A formation in the market had triggered a bearish signal, causing the token to move to a high level before rising again.

At the time of writing, HYPE is trading at $24.63 with a 24-hour trading volume of $202.84 million. HYPE’s market cap currently stands at $8.35 billion. The token has shown a positive increase of 1.08% in the last 24 hours. This comes after a noticeable drop in the token’s price earlier this month.

Hyperliquid (HYPE) Double Top Distribution Confirmed

On December 10, popular crypto analyst CryptoPulse shared a chart outlook on HYPE, showing how it had formed a Double-Top pattern. The analyst said the pattern would be confirmed when the price closes below the neckline for multiple four-hour periods. Shortly thereafter, the pattern played out as predicted, with HYPE falling below $22.

Later confirmation by CryptoPulse revealed also a successful outcome for the down trade as the short position was closed close to the local low. The analyst also made a whopping 20% ​​profit with this transaction.

Also read | HYPE means collapse or rise: key $20 level is under pressure

HYPE is bouncing on long-term support

Meanwhile, another analyst, GainMuse, presented a broader look at the structure of the HYPE market. As GainMuse explained, the token recently recovered from the bottom line of a long-term descending channel after spending weeks in a tight range. Such a response indicates that buyers are entering at a key point, perhaps setting the stage for an upward trend.

GainMuse further explained that if this trend of defending the support zone continues, HYPE could look to stage a recovery towards the channel’s falling resistance. Although there is no confirmation yet, the situation is currently at a critical level for HYPE.

Also read | Bitget Wallet adds hyperliquid integration to increase access to on-chain trading activities