Date: Wed, Jan 22, 2025, 08:46 AM GMT
In the cryptocurrency market, within the last 24 hours, we are witnessing a significant rebound as the price of Bitcoin (BTC) is up by over 3% and trading above $105K. Following this, altcoins are also coming up on the green track, including Hyperliquid (HYPE), which is in the spotlight today with an impressive rally of over 20% in the last 24 hours.
Source: Coinmarketcap
Breakout and Retest
The momentum in HYPE started when it 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.
Hyperliquid (HYPE) 1D Chart/ Coinsprobe (Source: Tradingview)
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.
Following the successful retest, HYPE made a powerful move today, breaking through the key resistance zone at $24.49. This pushed the token’s price to its current level of $26.42, where it is now testing a new resistance zone.
Is More Rally Ahead?
The question now is whether HYPE can sustain its upward trajectory. If it manages to break through the current resistance at $26.40, analysts anticipate further movement toward its next resistance levels at $29 and $35.37, representing a potential 31% increase from the current price.
The Moving Average Convergence Divergence (MACD) indicator is currently signaling bullish momentum, with the MACD line crossing above the signal line. This crossover is often viewed as a strong indicator of upward price momentum.
Conclusion
Hyperliquid (HYPE) is gaining significant momentum following its breakout and retest. While the token’s ability to clear its current resistance zone will determine the next leg of its rally, the technical indicators and market sentiment appear favorable.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
