- Hyperliquid (HYPE) has surged 8% in 24 hours and posted a remarkable 69% gain over the past month, riding the broader crypto market rebound.
- HYPE is approaching completion of a Bearish Butterfly harmonic pattern near $42.51, which typically signals potential short-term exhaustion in uptrends.
- Key upside target sits at $45.74 if bullish momentum continues, while downside support is expected around $38.63 representing a potential 9% decline.
- The token is currently trading at a critical resistance zone where price action in the coming hours will determine whether the bearish pattern triggers a pullback or invalidates for further upside.
Date: Wed, June 11, 2025 | 06:50 AM GMT
The cryptocurrency market has staged an impressive rebound this quarter, with Ethereum (ETH) leading the charge. After climbing over 53% in Q2, ETH is now trading near $2,800, having recently touched a high not seen since February. This renewed momentum is sparking fresh interest across the major altcoins— including Hyperliquid (HYPE).
HYPE has jumped over 8% in the past 24 hours and has now posted a staggering 69% gain over the last month. However, while the rally has been strong, a closer look at the technical setup shows that the token may be reaching a potential turning point.
Bearish Butterfly in Play
The 4-hour chart reveals that HYPE is nearing the completion of a Bearish Butterfly harmonic pattern — a classic technical setup known for indicating short-term exhaustion in uptrends. This pattern typically warns of a possible correction once price reaches the final D-point.
As illustrated on the chart, the D-point of the Butterfly is forming near $42.51, aligning perfectly with the 1.272 Fibonacci extension of the XA leg — a level often considered the “Potential Reversal Zone” (PRZ).
At the time of writing, HYPE is trading around $42.48, meaning it has effectively touched the critical resistance zone. If the bearish harmonic setup plays out, the token could see a local pullback.
Key Levels to Watch
Upside Target: If bullish momentum overpowers the PRZ, HYPE could stretch further toward the 1.618 extension level at $45.74, suggesting another leg higher before any meaningful reversal.
Downside Support: If the pattern triggers a correction, traders will be watching the 38.2% Fibonacci retracement of the C to D leg, which sits around $38.63. This marks a potential 9% decline from the current price and is often a strong support area for a technical rebound.
What’s Next for HYPE?
While the broader trend remains bullish, short-term caution is advised as HYPE enters a historically sensitive zone. A clean break above $42.50 with strong volume could invalidate the bearish pattern and open the door for a continuation toward $45+. On the flip side, a rejection from current levels could trigger a healthy pullback toward $38 before the next move.
Traders and investors should monitor price action closely in the coming hours to confirm direction.
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