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Since then, the price has gone up in 14 out of the last 21 trading sessions as bullish momentum has been quite strong.
However, the Relative Strength Index (RSI) has already been moving close to overbought levels, meaning that the rally could soon face an imminent pullback.
Although the price has been rising steadily, it has been moving at a close distance from its 21-day EMA, which raises the odds that a strong pullback could result in a bearish breakout in the near term.
The MACD’s histogram had been trending lower until yesterday when it posted its first higher high in two weeks. This could be an early indication that bullish momentum is regaining steam.
HYPE is still trading below its point-of-control (POC), which currently stands at around $23. When prices are below the POC, bears are still in control of the price action.
Hence, for HYPE to make a strong climb to $23, bulls first need to capture this key threshold as that would mean trading volumes are in their favor and not against the trend, as they are now.
The 21-day EMA is the key support to watch in case of a pullback as the market could take a step back to capture some liquidity before making a move toward the $23 resistance.
Key Support Areas to Watch
Now heading to the lower time frames, bullish momentum seems to have accelerated after the price broke above the $19 resistance. There were multiple retests of this key level that confirmed its relevance for market participants but the price bounced off it multiple times.
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