Date: Sat, May 31, 2025 | 05:25 AM GMT
The cryptocurrency market experienced a sharp correction over the past 48 hours, dragging most major tokens into the red. Bitcoin (BTC) briefly dropped to $103K, while Ethereum (ETH) slipped to around $2,500. This sudden move triggered heavy selling in altcoins — including Hyperliquid (HYPE), which saw a sharp retracement after recent bullish momentum.
HYPE is currently trading in the red but has surged over 125% in the last 60 days, and now a well-known harmonic pattern forming on its chart suggests that a rebound may be on the horizon.
Harmonic Pattern Signals More Upside
In the 2-hour timeframe, HYPE is forming a Bearish Butterfly harmonic pattern — a structure that, despite its name, often leads to further upward movement before reaching a key reversal point.
The formation began after HYPE was rejected at $65.06 (point X), leading to a 13% drop and bottoming around $30.65 (point A). This formed the initial XA leg of the harmonic pattern.
From there:
- AB Leg: HYPE retraced 81.8% of the XA drop — fitting within ideal harmonic parameters.
- BC Leg: It bounced again, correcting around 93.4% of the AB leg and finding support near $30.89 (point C).
- CD Leg: The final leg has now begun, with bulls eyeing the 1.272 Fibonacci extension at $36.30 as the primary target (point D).
If this pattern completes, it could trigger a temporary top, but also offer solid opportunities for traders aiming to ride the last leg of the bullish wave.
What’s Next for HYPE?
Currently trading around $31.75, HYPE has room to climb around 14% toward the $36.30 level. If market sentiment continues to improve, and momentum remains strong, an extended move toward the 1.618 Fibonacci level at $37.83 could also be in play.
However, traders should stay cautious. Ethereum (ETH)’s price action remains unstable and could have a ripple effect on altcoins like HYPE. A failure to hold above $30.65 support could invalidate the pattern.
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