HYPE Breaks Above Its 20-Day EMA, Signaling a Shift in Market Trends

HYPE, the native token of decentralized perpetuals exchange Hyperliquid, has emerged as the top gainer in the cryptocurrency market over the past 24 hours, with a 17% price surge.

The native token of decentralized perpetuals exchange Hyperliquid, HYPE, has seen a 17% price surge in the past 24 hours, making it the top gainer in the cryptocurrency market. This double-digit rally has pushed HYPE above its 20-day Exponential Moving Average (EMA), a critical resistance level it had struggled to break through for the past nine days.

This breakout signals a decisive shift in market trends and hints at the possibility of an extended rally. Here's a closer look at what this technical setup reveals about HYPE's price action.

HYPE Breaks Above Its 20-Day EMA: A Bullish Shift

An examination of the HYPE/USD one-day chart reveals that HYPE is now trading above its 20-day EMA. This key moving average measures an asset’s average price over the past 20 days, giving more weight to recent prices to reflect current trends.

When an asset's price breaks above the 20-day EMA, it signals a shift in momentum, often indicating growing bullish interest. This breakout suggests that a previously strong resistance level is now being flipped into a potential support floor, indicating the presence of buyers stepping in to sustain the price above this level.

In HYPE's case, its 20-day EMA previously acted as a resistance at $23.12, which has now been transformed into a support level. If it holds, the current uptrend will be reinforced, and the token could attempt to record more gains.

Resurgence in Demand for HYPE: Chaikin Money Flow Shifts Positive

The setup of HYPE's Chaikin Money Flow (CMF) also confirms the resurgence in demand for the altcoin. After spending eight consecutive days in negative territory, HYPE's CMF turned positive on Thursday, signaling a shift from a bearish to a bullish trend as accumulation gains strength. At press time, the indicator is at 0.02, indicating the growing demand for the token.

An asset's Chaikin Money Flow indicator measures money flow into and out of its market. A CMF value above zero indicates strong buying pressure. It suggests that capital is flowing into the asset and accumulation exceeds distribution, which bodes well for an asset's price trend.

HYPE Price Prediction: Will Strengthening Accumulation Push It to $30?

If HYPE accumulation strengthens, it will extend its current rally. In that case, its price could break above the resistance formed at $27.53 to trade at $30.37, a level it last reached in December.

On the other hand, a surge in profit-taking will invalidate this bullish outlook. In that scenario, HYPE could test the support formed by the 20-day EMA at $23.12. If it fails to hold, the altcoin's price could fall toward $18.50.