Date: Sun, Jan 19, 2025, 11:20 AM GMT
In the cryptocurrency market this week, Bitcoin (BTC) has made a strong recovery, bouncing from Monday’s low of $89K to its current price of above $104K. This rally has pushed BTC dominance to a high of 59%, causing a significant decline in many altcoins.
Amid this, HYPE, the native token of Hyperliquid—a decentralized perpetual futures exchange built on its own Layer 1 blockchain—has come into the spotlight. The token has posted impressive gains of over 5%, with its recent breakout and retest signaling the potential for a bullish upside move.
Retests Falling Wedge Breakout
HYPE recently broke out of a long-standing falling wedge pattern, which had constrained its price movement for weeks. On January 14, the token decisively broke above the upper trendline of the wedge, rallying to a local high of $24.41.
However, as is typical after a breakout, HYPE experienced a pullback to retest its breakout trendline near $19.50, which is now acting as strong support. This retest confirmed the validity of the breakout, and the token has since rebounded, currently trading around $22.70—just below a key resistance zone.
If HYPE manages to break above this resistance zone (around $24.41), it could trigger a significant rally. The next resistance levels to watch are $26, $29, and $35, representing potential gains of up to 47% from its current price. The measured move target for the falling wedge aligns with these projections, reinforcing the bullish case.
The technical indicators add further weight to the bullish outlook:
1.MACD: The MACD is showing early signs of a potential bullish crossover, with the MACD line (orange) approaching the signal line (blue). This suggests that buying momentum could be building.
2.RSI: The RSI is currently at 45.40, in neutral territory. A move above 50 would indicate a shift in momentum toward bullish dominance.
These indicators, combined with the recent price action, suggest that HYPE may be positioning itself for another leg up.
What’s Ahead?
For HYPE to continue its upward trajectory, it must clear the $24.41 resistance zone decisively. A strong breakout above this level could pave the way for a sustained rally toward its next resistance targets, with $35 being the ultimate goal of the current setup. However, failure to break resistance could lead to further consolidation around the $21–$24 range, where the token has established strong support and resistance.
As Bitcoin’s dominance remains high, broader market conditions will also play a role in HYPE’s next move. Traders and investors should keep an eye on BTC’s performance, as a pullback in BTC could reinvigorate interest in altcoins like HYPE.
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