The daily chart for Hyperliquid (HYPE) shows a sharp red candle today, representing the 9% drop that has concerned some traders. This downturn follows yesterday’s negative price action, combining for a substantial two-day decline of 14%. Despite this bearish short-term movement, a strong upward-sloping trendline remains intact on the chart.
This ascending trendline connects higher lows in the price action, suggesting that despite volatility, buyers have consistently shown interest at progressively higher price levels. This pattern typically indicates underlying strength in the asset.
The Critical HYPE Support Level
What makes the current price action particularly interesting is that HYPE is now approaching this key trendline. In previous instances when the price reached this level, it found support and subsequently bounced higher. This historical behavior forms the basis for the poster’s analysis that the short-term dip may be concluding.
The trendline has effectively functioned as a reliable zone where buyers typically step in with fresh liquidity, preventing further declines and initiating new upward movements. This consistent behavior has established the trendline as a significant technical feature on Hyperliquid chart.
Potential Upside Target for HYPE Price
If this support trendline holds as expected, HYPE could experience a substantial bounce. The analysis indicates potential for more than a 20% increase from current levels, with a specific projection of roughly 23.95%.
Based on this calculation, traders might look toward a price target near the $28 level. This potential move has been drawn out with a blue arrow on the chart, visually representing the expected trajectory if buyers successfully defend the trendline support.
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Risk Assessment
While the technical setup appears promising for a bounce, there is always a risk scenario. Should the price break below this critical trendline support, the bullish projection would be invalidated, potentially leading to further downside pressure on HYPE token.
As with any technical analysis, the scenario depends on buyers stepping in at the expected support level. The poster’s confidence in this outcome appears to be based on the consistent historical behavior at this trendline, though prudent traders will likely watch for confirmation before committing capital.
Hyperliquid’s current price action presents an interesting opportunity for traders comfortable with the associated risks. While the recent bearish movement has pushed the price down significantly, the approach to a historically significant support trendline provides a potential entry point for those anticipating a rebound.
