Key takeaways:
HYPE breaks out above key resistance, eyeing a 40% move toward $56.50 by November.
A drop below the 200-day EMA could invalidate the bullish setup and push the price toward $32–$34.
HYPE, the native token of decentralized exchange Hyperliquid, jumped over 13% a day after listing on US-based trading platform Robinhood; it was trading as high as $40.87 on Friday.
Can HYPE rally further from current levels?
HYPE breakout hints at 40% rally next
HYPE has confirmed a breakout from its multi-week falling wedge pattern, a setup often viewed as a bullish reversal signal.
The breakout occurred as prices surged above the wedge’s upper trendline and the 200-day exponential moving average (200-day EMA; the blue wave), both of which now act as a strong support confluence near the $38 zone.
The breakout was accompanied by a notable increase in trading volume, suggesting fresh buying interest and the possible start of a new uptrend phase.
HYPE may rally toward its wedge upside target of about $56.50, representing a 40% increase from current price levels, by November.
Related: Hyperliquid Strategies wants $1B to buy further into the HYPE
That aligns with analyst Crypto Patel’s upside target above $50, a level sitting around the lower trendline of HYPE’s previous ascending channel, as shown below.
What could change the bullish view?
A drop back below the 200-day EMA would invalidate the bullish setup and hint at a false breakout, sending HYPE’s price toward the wedge’s lower trendline at around the $32-34 range.
Patel sees HYPE falling toward $20 if the price breaks below $32, although he sees strong buying demand within the area.
“That’s where long-term holders should be loading their bags HEAVY,” he wrote, adding:
“Your last line of defense in this bull market is $10, but I seriously doubt we get there.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is produced in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
