Hyperliquid (HYPE) has successfully flipped its $20 resistance into a robust support level, setting the stage for a potential 41% surge toward the $29 mark.
Technical Analysis: Key Support and Fibonacci Confluence
After consistently forming higher highs and higher lows, Hyperliquid has managed to break through the crucial $20 level, transforming it into a solid support zone. This support/resistance flip not only affirms the bullish trend but also positions Hyperliquid for a continued rally if the $20 support is defended.
- Support at $20: The 0.618 Fibonacci retracement level perfectly aligns with the $20 support zone, adding a significant layer of confluence. This makes the area a critical point for bulls to hold during potential pullbacks.
- Target at $29: If the current bullish structure holds, the next target is seen at $29, representing a potential 41% upside from the current price. This level serves as a strong resistance that could confirm further bullish momentum upon breakout.
Why Bulls Are in Control: A Bullish Setup in Play
Hyperliquid’s breakout above $20 is more than a simple resistance flip. It signifies a shift in market sentiment, as buyers step in to support the level and build momentum for the next leg up.
- Volume Confirmation: Traders should look for volume spikes and daily closes above $20 to validate the ongoing bullish momentum.
- Risk-Reward Analysis: The risk-to-reward ratio remains attractive at current levels. A retest of $20 could provide a solid entry point, with the $29 target offering substantial upside potential.
If the $20 support holds, Hyperliquid is well-positioned for a continued rally, with a 41% move toward $29 reinforcing its bullish structure and further solidifying the uptrend.
