Hyperliquid (HYPE) Climbs 32%, Confirming a Breakout into Bull Phase

Key Takeaways

• Breakout from a descending channel signals completed correction.
• Uptrend indicates ongoing development of a new bull phase.
• Momentum looks strong, with more upside anticipated.

Hyperliquid (HYPE) has exhibited significant price movement, breaking out from the long-lasting descending channel. 

Will the price continue growing, as it increased 32% from its recent low and showed signs of overextension?

HYPE Price Analysis

The 4-hour chart shows HYPE completing an extended ABC correction on Jan. 13 at around $19, followed by a bullish breakout from a descending channel.

The price has shifted momentum upward, signaling the start of a new impulsive wave. 

HYPE rallied past $25 following the breakout, reclaiming key Fibonacci retracement levels and forming a higher high above prior resistance at $24.33. 

The Relative Strength Index (RSI) on the 4-hour chart shows a strong recovery from oversold conditions. It is now hovering near 70, which signals robust momentum.

However, caution is warranted as overbought levels could precede a short-term consolidation. 

Despite this bullish outlook, key retracement levels like $22.73 (0.5 Fib) and $23.24 (0.618 Fib) are immediate support zones if a correction occurs.

Overall, the mid-term trend remains bullish, with the breakout confirming a shift in sentiment.

HYPE Price Prediction

Zooming into the 1-hour time frame, wave counts suggest the price is in the midst of an impulsive wave (iii), following a textbook breakout from the descending channel.

The price has surpassed the 1.0 Fibonacci extension at $25.62, confirming upward momentum. Immediate targets are $29.47 (1.618 Fib), followed by $31.85 (2.0 Fib), where resistance may emerge due to prior consolidations.

The RSI indicates slight overextension but remains below extreme overbought levels, leaving room for further upside.

A temporary pullback within wave (iv) is anticipated, potentially revisiting $25.62 (1.0 Fib) or $24.29 (0.786 Fib) before resuming the uptrend. If wave (v) unfolds as expected, the price could be $33.55 (2.272 Fib), completing the impulsive sequence.

Downside risks are minimal but remain plausible if momentum falters. A drop below $22.51 (0.5 Fib) would invalidate the bullish wave count and signal a return to the prior corrective phase.

Key Levels to Watch

• Immediate Resistance: $29.47 (1.618 Fibonacci extension).
• Secondary Resistance: $31.85 (2.0 Fibonacci extension).
• Major Resistance: $33.55 (2.272 Fibonacci extension, wave (v) target).
• Immediate Support: $25.63 (0.382 Fibonacci retracement).
• Secondary Support: $24.29 (0.786 Fibonacci extension).
• Critical Support: $22.73 (0.5 Fibonacci retracement on the 4-hour chart).
• Invalidation Zone: Below $20.86 (0.236 Fibonacci extension).

HYPE’s price made a descending channel breakout, rising 32% from the recent low. More upside is expected to validate the start of a new bull phase.