Key Takeaways
- •HYPE has broken out above key resistance levels, with a potential for a 40% move toward $56.50 by November.
- •A sustained drop below the 200-day Exponential Moving Average (EMA) could invalidate the current bullish outlook and lead to a price decline toward the $32–$34 range.
HYPE, the native token of the decentralized exchange Hyperliquid, experienced a significant price increase of over 13% following its listing on the US-based trading platform Robinhood. The token reached an intraday high of $40.87 on Friday.
The recent surge raises the question of whether HYPE's price can continue to climb from its current levels.
HYPE Breakout Suggests Potential for a 40% Rally
HYPE has successfully broken out of a multi-week falling wedge pattern, a technical formation that is often interpreted as a bullish reversal signal. This breakout occurred as the price moved above the wedge's upper trendline and the 200-day EMA, which collectively now serve as a strong support zone near the $38 mark.
The breakout was accompanied by a noticeable increase in trading volume, indicating renewed buying interest and potentially the beginning of a new upward trend phase for the token.
Based on this technical setup, HYPE could potentially rally towards its wedge upside target of approximately $56.50. This would represent a 40% increase from its current price and could occur by November.
This projection aligns with the upside target of over $50 identified by analyst Crypto Patel. His analysis suggests this level is situated around the lower trendline of HYPE's previous ascending channel.
Factors That Could Alter the Bullish Outlook
A reversal in the current bullish trend could occur if HYPE's price falls back below the 200-day EMA. Such a move would signal a potential false breakout and could lead to a decline in HYPE's price towards the lower trendline of the wedge, estimated to be in the $32 to $34 range.
Crypto Patel has indicated that if the price breaks below $32, HYPE could potentially fall to $20. However, he also notes that strong buying demand is expected within this price 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.”