HYPE Gains 17% Weekly Amid Key Fractal Pattern Concerns

Hyperliquid’s native token, HYPE, has seen a sharp rise in recent days, with a 7% gain in the past 24 hours and a weekly increase of over 17%. This performance comes amid broader bullish momentum in the crypto market, particularly as Ethereum (ETH) reclaims the $4,200 level for the first time since 2021 [1]. Traders and analysts are paying close attention to HYPE due to the emergence of a key fractal pattern on its price chart, which has historical significance in technical analysis [1].

The pattern appears to mirror a similar setup that occurred on Binance Coin (BNB) in mid-2019, preceding a notable correction. At that time, BNB experienced a strong rally followed by a multi-stage pullback. Price frequently tested the 25-day moving average before staging smaller rebounds, only to roll over again [1]. HYPE is now following a comparable trajectory, with its latest bounce occurring in a zone that corresponds to the pause BNB saw before its larger decline. This has led to speculation that HYPE may be approaching a similar inflection point [1].

Technical analysts highlight that the key level to watch is the 25-day moving average at $42.34. A break below this threshold could confirm a bearish continuation, potentially leading to a deeper pullback toward the mid-$25 range. Conversely, if HYPE holds this support and surpasses its recent all-time high of $49.88, the fractal pattern would be invalidated, signaling renewed bullish momentum and the possibility of further gains [1].

The recent price action in HYPE has also been attributed to increased inflows into the Hyperliquid platform, which has seen a notable rise in trading volume over the past month. Broader optimism about the development of derivatives infrastructure in the crypto space has further supported the token’s performance, helping it outpace many of its peers despite recent market volatility [1].

Market observers note that algorithmic and institutional trading strategies may also be playing a role in reinforcing the visibility of the fractal pattern. However, it is important to emphasize that such patterns should not be treated as definitive predictors of future price movement. Their interpretation remains subjective and should be used as one of many tools in a trader’s analytical toolkit [1].

The similarities between HYPE’s current trend and past cycles in the DeFi and perpetual trading sectors suggest a potential for rapid appreciation, provided the token maintains its technical and user growth fundamentals. While these comparisons are informative, they are not guarantees of identical outcomes in the current market environment [1].

As the fractal pattern continues to unfold, traders are closely monitoring HYPE for signs of confirmation or reversal. The coming days and weeks will likely determine whether this pattern holds predictive value or fades into a false signal amid the ongoing volatility in the crypto market [1].

Source: [1] Hyperliquid (HYPE) Soars Higher While Tracing Key Fractal Pattern – What Could Come Next? (https://coinmarketcap.com/community/articles/6898299d0fda8d1ccc6add8a/)