The broader cryptocurrency market is experiencing significant downward pressure, with aggressive selling leading to the liquidation of over $2.02 billion in leveraged positions within the last 24 hours. Bitcoin (BTC) and Ethereum (ETH) have both experienced steep declines exceeding 10%, contributing to market-wide panic and a sharp downturn in major altcoins. Hyperliquid (HYPE) has also been affected, recording a substantial 17% decrease amidst this market-wide correction.
Despite this challenging market environment, chart analysis reveals a compelling fractal structure forming for HYPE, which could potentially foreshadow an unexpected rebound. This pattern bears a striking resemblance to a move previously observed in XRP earlier this year.
HYPE Mirrors XRP’s April 2025 Structure
Examining the chart, the left side illustrates XRP's price action during April 2025. XRP underwent a significant correction of 45% before finding support within a strong demand zone. This period involved sweeping liquidity below previous lows and entering a prolonged accumulation phase. Throughout this build-up, XRP repeatedly failed to surpass its moving average breakdown area, encountering multiple rejections near a key resistance band, which is indicated by a blue circle.
However, once XRP completed its accumulation phase and established a flipped structure, it initiated a powerful breakout. This breakout allowed XRP to reclaim its moving average breakdown resistance zone and fuel a substantial rally of over 87%, pushing the price towards new local highs.
On the right side of the chart, HYPE is currently exhibiting an almost identical pattern. It has already experienced a comparable 45% decline, wickedly into a similar demand region, seen a liquidity sweep, and faced rejection from the same cluster of moving averages in a remarkably similar fashion. The observed symmetry suggests a strong possibility of historical patterns repeating.
Potential for a Bounce
A critical level to monitor is the demand zone situated between $31 and $33, where HYPE is currently attempting to stabilize. If the fractal continues to align with XRP's April setup, this zone could serve as the base for a significant upside reversal. The initial confirmation of aggressive buyer re-entry would be observed upon reclaiming the moving averages breakdown resistance zone, which is located near $45.0.
A successful breakout above this resistance level could pave the way for an extended relief rally, potentially mirroring the 87% surge that XRP achieved earlier this year after completing a similar pattern.
Conversely, if HYPE fails to hold the support zone below its current wick structure and experiences a decisive drop below $30.75-$31, the fractal pattern would be invalidated. In such a scenario, a deeper correction could ensue, possibly extending towards lower liquidity pools before new support is established.
The upcoming days will be pivotal in determining whether this setup evolves into a profitable trading opportunity or succumbs to continued market pressure.