Key takeaways:
HYPE breaks out above key resistance, eyeing a 40% move toward $56.5 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, has jumped by over 13% a day after its listing on US-based trading platform Robinhood, and 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 volumes, suggesting fresh buying interest and the possible start of a new uptrend phase.
HYPE may rally toward its wedge upside target of around $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 the $20-$ 20 range 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.
