- Hyperliquid (HYPE) is forming a rounding bottom pattern on the daily timeframe, suggesting a potential bullish reversal after finding strong support at $22.20.
- The cryptocurrency market is showing renewed stability in early 2026, with Ethereum up nearly 6% weekly and major altcoins regaining momentum.
- A key test lies ahead at the 50-day moving average near $29.78, where a sustained reclaim would confirm buyers are regaining control after months of correction.
- The critical resistance zone sits at $51.42-$50.06, where a clean breakout would validate the rounding bottom pattern and potentially trigger a broader bullish expansion.
Date: Sun, Jan 04, 2026 | 01:14 PM GMT
As 2026 gets underway, the broader cryptocurrency market is showing renewed stability. Ethereum (ETH) is up nearly 6% on the week, and several major altcoins are beginning to regain momentum. Against this improving backdrop, Hyperliquid (HYPE) is quietly positioning itself as a potential late mover, with its chart structure starting to flash early bullish signals.
While HYPE remains mostly flat on the weekly timeframe, the more important story is unfolding beneath the surface. Recent price action suggests a meaningful structural shift may be underway — one that could mark the early stages of a bullish continuation if key levels are reclaimed.
Rounding Bottom Pattern Taking Shape
On the daily timeframe, Hyperliquid appears to be forming a rounding bottom pattern, a classic bullish reversal structure that typically develops after a prolonged corrective phase. This pattern reflects a slow transition from aggressive selling to steady accumulation, as downside momentum fades and buyers gradually step back in.
The setup began after HYPE faced strong rejection near the $51.42–$50.06 neckline resistance zone, which triggered a sharp decline through late November and December. That downside move eventually found strong demand near the $22.20 support level, where selling pressure stalled. Multiple defenses of this area prevented further downside and helped establish a solid base for a potential trend reversal.
Since carving out that bottom, HYPE has started to curve higher in a smooth, rounded fashion — closely matching the textbook structure of a developing rounding bottom. The recent stabilization above the $25 region further supports the view that selling pressure is weakening and accumulation may be underway.
A key technical level now comes into play: the 50-day moving average, currently hovering near $29.78. This level has acted as dynamic resistance during the early recovery phase, and reclaiming it would mark an important shift in short-term market structure.
What’s Next for HYPE?
A sustained reclaim of the 50-day MA would be the first meaningful confirmation that buyers are regaining control after months of corrective price action. Holding above this level could allow price to build momentum toward the 100-day MA, which would further reinforce the developing reversal structure.
Looking ahead, the most important level remains the $51.42–$50.06 neckline resistance zone. A clean breakout above this area would validate the entire rounding bottom pattern and could open the door to a broader bullish expansion phase, with momentum traders likely re-entering the market.
In the near term, all eyes remain on the 50-day MA reclaim for upside confirmation. Until that happens, short-term consolidation or shallow pullbacks remain possible. However, as long as price continues to hold above the established base, the broader bottoming structure remains intact and constructive.
Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.
About Author: Nilesh Hembade is the Founder and Lead Author of Coinsprobe, with over 5 years of experience in the cryptocurrency and blockchain industry. Since launching Coinsprobe in 2023, he has been providing daily, research-driven insights through in-depth market analysis, on-chain data, and technical research.
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