The broader cryptocurrency market is experiencing some weekend relief following a significant mid-week sell-off that saw Ethereum (ETH) drop to $3069 before recovering to near the $3200 zone.
Hyperliquid (HYPE) is also attempting a recovery, showing modest gains today. However, the primary focus is on a clear harmonic structure that is developing on its chart, hinting at a potential upside move that may unfold soon.
Potential Bearish Bat Pattern Formation
On the 4-hour chart, HYPE appears to be forming a Bearish Bat harmonic pattern. While the name suggests a bearish outlook, this pattern often precedes a bullish push towards its completion point (Point D) before a potential reversal occurs.
This structure originated at Point X, located near $50.170. Following this, there was a sharp decline to Point A, followed by a bounce to Point B, and then a deeper correction into Point C, which settled around $36.002. Since this low, HYPE has begun a steady rebound and is currently trading near $39.31, exhibiting early signs of building momentum.
Supporting this developing upward trend is the 100-hour moving average, which is currently positioned around $40.472. Successfully reclaiming and holding this level will serve as an important signal of increasing buyer conviction.
Future Outlook for HYPE
If bullish sentiment continues to defend the $36 support region and buyers manage to flip the 100-hour moving average into support, the Bat pattern suggests a potential rally towards the Potential Reversal Zone (PRZ). This zone is projected to be between $48.485 (representing the 0.886 Fibonacci extension) and $50.17 (representing the 1.0 Fibonacci extension).
This projected zone indicates an upside potential of approximately 27% from current trading levels. This aligns perfectly with classic harmonic completion zones where price action often experiences significant reactions.
Conversely, if HYPE falls below the support level within the CD-leg, the momentum driving the pattern may weaken. This could delay the anticipated bullish scenario and potentially lead to a short-term correction before any renewed attempt to push higher.