Hyperliquid (HYPE) Price Surges 100% as It Challenges 130-Day Resistance Level

Key Takeaways

• Hyperliquid (HYPE) trades inside a descending wedge.
• The HYPE price has nearly reached the $20 resistance.
• Can HYPE break out above this area and move to $27?

The Hyperliquid price fell by 73% after its all-time high in December 2024, reaching a low of $9.32 on April 7.

HYPE has rallied since, increasing 100% and reaching a critical confluence of resistance near $20.

If the price breaks out, HYPE will confirm the correction is over, and new highs await.

Let’s examine the charts and see if this will be the case.

HYPE Price Nears Resistance

The daily time frame HYPE chart shows that the price has decreased inside a descending wedge pattern since its all-time high of $35.73.

Hyperliquid’s price decline led to a low of $9.29 on April 7, validating the wedge’s support trend line (green icon).

The HYPE price bounced afterward and has doubled, reaching the wedge’s resistance, which coincides with the $20 area.

A breakout above this level will confirm HYPE’s bullish trend reversal and could take the price to the next resistance level, $27.

Technical indicators showed strength before the upward movement, visible by the bullish divergences in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).

However, the MACD has nearly made a bearish cross (black circle), and the RSI is barely above 50, both signs of weakness.

So, the daily time frame does not confirm whether the HYPE price will break out.

Will HYPE Break Out?

The HYPE wave count suggests the price will eventually break out, though it will fail on the first try.

So, while the long-term HYPE price prediction is bullish, the short-term is not.

The most likely count shows the Hyperliquid price has completed a five-wave downward movement since the high (red).

The shape of the decline means the trend is bearish, and upward movements are corrective.

If so, HYPE has started an A-B-C correction (green) on April 9 and is nearing the top of wave A.

The sub-wave count (black) supports this outlook since it shows a completed five-wave increase.

As a result, the HYPE price could fall soon, finishing wave B.

Then, wave C could cause a breakout from the wedge and $20 area, taking the price to $22.30-$25.40.

Rejection Before Breakout

The HYPE price has shown tremendous strength by doubling since April 9.

However, the price has reached a significant resistance near $20.

The wave count suggests the area will act as a local top, triggering a corrective rally.

Nevertheless, another HYPE upward movement is likely in the long term, triggering a breakout above $20.