Hyperliquid (HYPE) prices rebound from support, but can bulls recover $70?

Hyperliquid (HYPE) price test declines in wedge resistance. Can it break through US$63 and continue its rebound?

Hyperliquid (HYPE) prices are currently trading around US$59 after rallying from the lower boundary of a downward wedge. After a long period of correction, the buyer is trying to regain control of the situation. The token is approaching a key resistance area near $63, and a confirmed breakthrough could signal the beginning of a broader recovery. In addition, technical indicators and derivatives data also point to bullish divergences. Can HYPE take advantage of the weakening short momentum to regain the $63 resistance level and continue its recovery momentum?

Hyperliquid tests downward wedge resistance

Hyperliquid prices are trying to rebound after holding on to the lower boundary of the downward wedge. A downward wedge is a technical pattern that usually signals a bullish reversal when a breakthrough is confirmed. Although buyers have regained some momentum, HYPE remains below a key resistance zone that will determine whether the rebound continues or stagnates.

HYPE prices are testing the upper boundary of a downward wedge near US$59. A break through this trend line may confirm a shift in short-term momentum. Direct resistance is between $62.8 and $63.2, and the previous support area has now turned into resistance. If the area can be successfully recovered, it may open the door to a rebound towards $66 and further challenge the round mark of $70.

The Relative Strength Indicator (RSI) has formed a bullish divergence, with prices hitting lower lows, while the RSI has recorded higher lows. This divergence suggests that selling pressure is weakening and buyers may be preparing for a reversal. Despite attempts to rebound, HYPE prices are still below the 20-period moving average and the upper Bollinger Band, indicating that buyers need to overcome multiple technical obstacles before confirming a continued upward trend.

If the wedge resistance fails to break, HYPE may retest the lower trend line near US$57; a break below this support level will invalidate the bullish pattern and expose the token to further downside risks.

Short clearing may push HYPE's next wave of action

Hyperliquid's clearing map shows that the market's next major liquidity pool is above current prices, strengthening the bullish technical structure. Coinglass data shows that in the range of US$59.5 to US$61.5, the concentration of short clearing continues to increase, and cumulative short clearing leverage continues to accumulate into the US$64 to US$65 region. This suggests that once the downward wedge is broken, a wave of forced short covering may be triggered, thereby accelerating bullish momentum.

At the same time, long clearing liquidity below current prices has been significantly reduced, indicating that most of the downward leverage has been cleared during HYPE's recent correction. Sellers 'motivation to hold down prices appears to be weakening as there are fewer leveraged long positions available for liquidation in the market.

The liquidation distribution is consistent with the technical pattern, and HYPE is trying to regain the upper boundary of the declining wedge. A decisive breakthrough in the US$59.5 to US$60 range could force short positions to close positions, thereby increasing buying pressure and increasing the possibility of a rebound towards the key resistance level of US$63.

Falling open interest contracts indicate leverage reset

Hyperliquid's open interest contracts have continued to fall over the past few trading days, falling from nearly $2 billion to approximately $1.7 billion as HYPE consolidates around $59. The decline suggests that during the recent correction, traders are more inclined to liquidate leveraged positions rather than add new exposure.

The decrease in open interest contracts suggests that speculative positions are gradually exiting the market, reducing the risk of another large-scale chain reaction of long liquidations. At the same time, HYPE successfully held key support levels, indicating that the correction was driven more by leveraged liquidations than proactive spot selling.

Can Hyperliquid (HYPE) reach US$70?

Hyperliquid prices are approaching a critical moment as it tests the upper boundary of the descending wedge. Bullish RSI divergences, short clearing above, and declines in open interest all indicate that short momentum is fading, which increases the likelihood of recovery. However,$63 remains the key hurdle. A breakout above this level could trigger new buying momentum and pave the way towards the psychological levels of $66 and $70. Conversely, failing to recover resistance levels, HYPE may retest the support area of $57 to $58, delaying any sustained recovery.