Key Takeaways
- A breakout from a descending trend signals a bullish reversal.
- Elliott Wave count suggests a five-wave impulse is developing.
- Key resistance at $15.61 and $18.33, with $12.89 as support.
Hyperliquid (HYPE) has recently exhibited a strong bullish reversal following an extended corrective decline.
The 4-hour chart highlights a broader Elliott Wave structure, indicating a potential shift in trend.
Fibonacci retracement and extension levels are key in identifying support, resistance, and potential upside targets.
HYPE Price Analysis
The 4-hour chart presents a completed corrective wave structure following an extended downtrend from the peak of $35.17.
The price found strong support near $11.81, forming a potential reversal zone.
A descending wedge pattern had been established, culminating in a breakout that signals renewed bullish momentum.
This aligns with the Elliott Wave structure, indicating the possible initiation of a five-wave impulsive recovery.
Key Fibonacci retracement levels outline significant resistance and support levels. The 0.786 retracement level at $15.36 is currently being tested, marking an initial barrier for further upside.
A decisive break above this level would expose the next resistance at the 0.618 retracement level near $20, followed by a more substantial resistance at the 0.5 retracement level at $22.
Momentum indicators suggest increasing strength, with the Relative Strength Index (RSI) rising from oversold levels to neutral territory, confirming bullish intent.
However, price action must sustain above $15.00 to validate a continued uptrend. Failure to hold above this level may trigger a retest of lower supports, with $12.89 as a key pivot.
HYPE Price Prediction
The 1-hour chart reveals an ongoing five-wave impulsive structure.
Wave (iii) is developing, with price action breaking through a minor descending trendline and approaching Fibonacci extension levels.
The next immediate resistance stands at the 1.0 extension level near $15.61, but if this is the assumed wave (iii), more upside will be expected.
A temporary pullback in Wave (iv) may occur before the final Wave (v) extends higher.
Should Wave (iv) materialize, a correction towards the 0.618 retracement of Wave (iii), near $14.57, is a reasonable expectation.
If buyers defend this level, Wave (v) could push the price towards the 1.618 Fibonacci extension at $17.29, aligning with previous structural highs.
A broader bullish target for the impulse lies at the 2.0 Fibonacci extension at $18.33.
This level would represent a significant recovery point in the larger downtrend.
However, should bullish momentum fade and the price drop below $12.89, it could indicate a failed breakout, leading to a deeper retracement towards the prior support near $11.81.
Key Levels to Watch
- Immediate Resistance: $15.61 (1.0 Fibonacci extension).
- Key Resistance: $17.29 (1.618 Fibonacci extension).
- Major Resistance: $18.33 (2.0 Fibonacci extension).
- Immediate Support: $14.57 (0.618 Fibonacci retracement).
- Critical Support: $12.89 (0.0 Fibonacci retracement).
- Short-Term Target: Above $18.33 if Wave (v) extends higher.
- Invalidation Zone: Below $12.89, signaling potential trend failure.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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