Hyperliquid (HYPE) has successfully turned a key resistance level at $20 into solid support, signaling potential for a significant rally toward the next target at $29, representing a potential 41% upside.
Technical Analysis: Key Support Level at $20
After forming a series of higher highs and higher lows, Hyperliquid has solidified a bullish breakout above $20, previously a strong resistance zone. This support/resistance (SR) flip not only confirms bullish control but also opens the door for further gains if the level holds.
- Support at $20: The $20 level now serves as crucial support, with the 0.618 Fibonacci retracement aligning perfectly with this zone. This confluence suggests strong buying interest, making it a pivotal area to watch for any pullbacks.
- Target at $29: The next major resistance is seen at $29, which, if reached, would mark a 41% gain from current levels. The breakout structure remains intact as long as the $20 support is respected.
Bullish Continuation Likely as Momentum Builds
With the $20 SR flip confirmed, Hyperliquid now has the technical foundation for a sustained rally. The Fibonacci confluence at $20 adds further validation to this support level, enhancing its significance as a potential launchpad for the next move up.
- Volume Confirmation: Traders should monitor volume spikes and daily candle closes above $20 for confirmation of sustained bullish momentum.
- Risk-Reward Setup: The risk-reward ratio at current levels is favorable for bulls, as a retest of $20 could offer a strategic entry point for a potential 41% gain.
If buying interest persists, Hyperliquid could see a continued rally toward $29, reinforcing its bullish structure and confirming the uptrend.
