HYPE is showing early signs of a bullish reversal, with a potential inverse head and shoulders pattern forming on the chart. If confirmed, this setup could mark the end of the current downtrend and open the door to a bullish expansion targeting $25.
The most critical level to watch is Hyperliquid’s (HYPE) neckline resistance at $17.17. A break above this neckline, especially when accompanied by surging volume, would validate the pattern and likely trigger a bullish expansion. The projected target sits at $25.05, calculated by measuring the depth of the head to the neckline and applying that distance above the breakout.
Key points covered in this article:
- The structure of the inverse head and shoulders forming on HYPE
- Key neckline resistance at $17.17, and the role of volume confirmation
- A bullish technical target of $25.05, with invalidation at the current swing low
HYPE has already formed a well-defined left shoulder and a deep head, indicating a strong retracement and potential bottoming formation. As the price starts to climb from the most recent low, the next step is the formation of a higher low, which would mark the right shoulder. Once complete, this structure signals a potential trend reversal and accumulation phase.
The neckline at $17.17 is the key breakout level. A clean move above it, especially on above-average or spiking volume, is essential to confirm the pattern’s validity. Volume is a critical filter—it helps distinguish real breakouts from fakeouts. Traders should monitor the volume profile closely as price approaches this area. A strong breakout above $17.17 opens the path toward the $25.05 target.
On the downside, the swing low—the lowest point of the head—remains the invalidation level for this setup. A break below that low invalidates the pattern, and any bullish bias should be reconsidered. However, if the right shoulder forms and holds, this zone offers a strong risk-reward entry ahead of a potential breakout.
How to trade this pattern:
Wait for a higher low to form (the right shoulder), signaling bullish structure.
- Enter early on strength in that region, or wait for confirmation.
- Confirmation comes with a close above $17.17 and rising volume.
- The target is $25.05 based on the measured move.
- Set invalidation below the current swing low for risk management.
