The cryptocurrency market is demonstrating positive momentum today, with both Bitcoin (BTC) and Ethereum (ETH) experiencing gains exceeding 1%. This upward trend has created a favorable environment for major altcoins, including Hyperliquid (HYPE).
The HYPE token has seen a significant increase of 11% over the past 24 hours. Technical analysis of its chart suggests that this rally may have further room to grow. A developing harmonic pattern, often indicative of potential continuation moves, points to the possibility of additional short-term upside for HYPE.
Harmonic Pattern Suggests Potential for Further Gains
Analysis of the 4-hour chart for Hyperliquid (HYPE) reveals the formation of a Bearish Gartley harmonic pattern. While the pattern's name suggests bearish implications, it typically involves a bullish phase prior to completion, indicating a potential short-term rally before any significant reversal.
The pattern initiated at point X, valued at $43.645. It then moved to point A, followed by a rebound to point B, and subsequently corrected down to point C, which was recorded at $34.493. Since that point, HYPE has experienced a strong recovery, currently trading around $38.88. This price action demonstrates renewed strength above the 50-hour moving average (MA), which is situated at $37.07, serving as a key indicator of short-term bullish momentum.
The next significant resistance level for buyers is observed near the 100-hour MA, which is approximately at $39.56. This level has previously acted as a barrier to upward price movement. A decisive break above this threshold could validate the continuation phase of the harmonic pattern.
Future Outlook for HYPE
Should buyers successfully drive HYPE's price above the 100-hour MA, the token could experience further upward movement towards the Potential Reversal Zone (PRZ). This zone is identified as being between $41.43 and $43.64. These Fibonacci-based price targets represent the area where the Gartley pattern is expected to complete. From its current trading levels, reaching this zone would signify an approximate upside of 12% to 14%.
Conversely, the 50-hour MA, located near $37.07, now acts as critical support in the short term. Maintaining this support level is essential for preserving the current bullish outlook for the token.