What you need to know:
- Hyperliquid has launched a policy center in Washington, DC to engage with regulators.
- HYPE is trading around $28.97 after a sharp rally and pullback.
- Immediate resistance is at $31.26; support remains near $27.79-$28.
- Momentum indicators suggest that bullish sentiment is cooling, signaling a possible correction.
Official hyperliquid (HYPE). launched its new policy center in Washington, DC this week, signaling a strategic move to strengthen regulatory engagement.
The initiative aims to shape the conversation around decentralized perpetual futures and trading products, and promote the development of DeFi within the US regulatory framework. Jake Chervinsky has been appointed as the center’s first CEO.
This is the aftermath of a sudden price surge from around $21.60 to the $35-$38 resistance level, with the token currently trading around $28.97 at the time of writing. Traders are cautious as they weigh technical levels against the potential long-term implications of regulatory positions.
Also read: Consolidation phase of hyperliquid (HYPE) could lead to the next big move
Price action shows key resistance and support levels
On the daily chart, the token is pushing against immediate resistance at the 20-day moving average of $31.26. The 50-day moving average is just above the $29.25 price level, while the 100-day moving average of $27.79 is a short-term support level. Bollinger Bands show higher resistance at $34.58 and lower support at $27.94.
If the sellers manage to build hype below the $27-$27.79 levels, the downside targets could move towards around $24.50 and then towards the previous swing low of $21.60. However, a daily close above $31.26 could help improve market sentiment and further support upside momentum.
Momentum indicators indicate a cooling of the bullish trend
This is evident from technical analysis, which shows that the bullish run in the token is losing steam. The RSI (14) is currently at 47.53, close to the 50 level but slightly below it, indicating a weakening trend after reaching close to the overbought level of 70.
Meanwhile, the MACD (12, 26, 9) has created a bearish crossover. The histogram stands at -0.51199, indicating moderate selling pressure and not a strong breakdown as indicated by the Trading view graphic.
This type of activity, where the price misses a key resistance level yet has a neutral to bearish momentum outlook, indicates that a pullback may be underway, despite the overall trends still being driven by Hyperliquid’s involvement with the regulators.
Why this matters
Hyperliquid’s expansion into Washington represents a larger regulatory stance that could have a significant impact on the long-term sentiment of investors in the token.
Traders should pay attention to key support and resistance levels as momentum indicators suggest a short-term correction is imminent despite the long-term bullish thesis.
Also read: Hyper Foundation allocates 1 million HYPE to Policy Center
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