Hyperliquid (HYPE) has successfully transformed the $20 resistance level into a formidable support zone, indicating a strong bullish breakout that could propel prices toward $29 — a potential 41% upside.
Technical Analysis: Breakout Confirms Bullish Momentum
After weeks of consolidation and gradual higher lows, Hyperliquid has finally broken through the critical $20 resistance, establishing it as a new support level. This support/resistance flip signifies a shift in market dynamics, as buyers firmly defend the level and position the asset for further gains.
- Support at $20: The $20 level is now acting as a strong support, bolstered by the 0.618 Fibonacci retracement, which coincides with the newly flipped level.
- Target at $29: If the support holds, the next resistance is situated at $29, marking a 41% potential upside. The $29 level is a key technical target, as it represents a major resistance zone that could determine the continuation of the bullish trend.
Strategic Setup: Bulls Control the Narrative
Hyperliquid’s breakout above $20 indicates a clear shift in momentum, as bulls reclaim control and position the asset for a significant rally.
- Volume Confirmation: To sustain the bullish momentum, traders should monitor daily closes and volume spikes above $20. A surge in buying volume would further solidify the support level, increasing the likelihood of a continuation toward $29.
- Risk-Reward Perspective: The risk-to-reward setup remains favorable, with the $20 support serving as a potential entry point. Traders can target the $29 level, capitalizing on the anticipated 41% upside.
Outlook: What to Watch for Next
If Hyperliquid successfully maintains support at $20, the market could see an accelerated move toward the $29 target. However, a failure to hold the $20 level could lead to a retest of lower support levels, potentially invalidating the bullish setup.
Key levels to monitor include:
- $20 Support: Critical for maintaining the current uptrend.
- $29 Target: The next major resistance, marking a 41% potential gain.
A daily close above $20 with strong volume could serve as the ultimate confirmation of the breakout, setting the stage for a bullish continuation toward the $29 mark.
