Hyperliquid (HYPE) Price Gains 18% With Golden Cross Signaling $30 Rebound

Key Takeaways

• The Hyperliquid token price increased by double-digits and has retested $22.50.
• The 9-EMA has risen above the 20-EMA, indicating the correction may be over.
• HYPE is on the verge of breaking above the lower high, with targets starting from $28.42.

HYPE, the decentralized perpetual trading platform Hyperliquid token, has seen its price surge by 18% in the last 24 hours. This recovery comes days after the altcoin reached its lowest level since its launch on Nov. 29.

According to CCN’s findings, HYPE’s correction resulted from the formation of a death cross. Several technical indicators also turned bearish.

However, things have changed since the time of writing. Due to this, the token’s value could be on its way to erasing a huge part of its recent losses.

Hyperliquid Recovers from Earlier Death Cross

On Jan. 7, HYPE’s price was $26.29. But on the same day, the 9-period Exponential Moving Average (EMA) — blue, slipped below the 20-EMA (yellow).

The EMA is a technical indicator that identifies and confirms the trend around a cryptocurrency. When the shorter EMA crosses below the longer one, the trend is bearish and is called a death cross.

However, the trend is bullish and is termed a golden cross when the longer EMA drops below the shorter one.  The bearish crossover around the abovementioned period ensured that HYPE’s price plunged to $18.92 on Jan. 13.

However, it was in this same region that HYPE found support, which has driven the price back to $22.50. Amid this rebound, the 4-hour chart shows that the 9-EMA has climbed above the 20-EMA, forming a golden cross.

The formation of this pattern indicates that the Hyperliquid token price might continue to increase, with a high possibility of breaching the supply zone at $24.62.

HYPE Price Prediction: New All-Time High Possible

Interestingly, HYPE’s technical setup on the daily chart also seems to align with the signs shown in the 4-hour timeframe.

Based on the image below, HYPE’s price has been trading within a descending channel since Dec. 21, when it dropped from $35.46.

A descending channel is a pattern formed when two parallel, downward-sloping trendlines appear. The trendline at the top connects a sequence of lower highs, while the one at the bottom links lower lows, indicating continued downward momentum.

However, HYPE is unlikely to experience accelerated downward pressure. This is because it is on the verge of breaking the upper trendline of the falling channel.

This region is also close to the 0.618 Fibonacci level at $22.88. Once the altcoin breaches this part, the price will likely hit the 0.786 Fib level at $28.42, which could set the stage for a $30 return.

Should buying pressure increase at this point, HYPE might climb to the psychological $40 milestone, which would mark a new all-time high.

On the contrary, if HYPE faces rejection at the 0.786 Fib level, this forecast might be rendered null and void.

In that case, the value could drop below the pattern’s lower lows and hit $15.11.