Date: Fri, May 16, 2025 | 03:50 PM GMT

The cryptocurrency market has seen a much-needed revival in recent weeks. After a brutal Q1 that saw Ethereum (ETH) fall by 45%, the second-largest crypto has now surged over 62% in the past month and is trading near $2,600 — its highest level in months. This renewed bullish sentiment is not just limited to ETH. It’s lifting altcoins across the board, including Hyperliquid (HYPE).

HYPE has gained over 74% in the last month. While this rally alone is a strong sign of bullish interest, technical analysis suggests the token might be on the verge of a major breakout.

Source: Coinmarketcap

Testing a Classic Rounded Bottom Resistance

On the daily chart, HYPE has formed a textbook rounded bottom — a classic bullish reversal pattern.

As shown in the chart below, the rounded bottom began forming after HYPE was rejected from the neckline resistance zone around $28.43 in early February. This rejection led to a deep correction of -67%, sending the token down to a low of $9.32 by April 7. Since then, HYPE has staged an impressive comeback, rising steadily back toward the same resistance zone it previously failed to break.

Hyperliquid (HYPE) Daily Chart/Coinsprobe (Source: Tradingview)

Currently trading at $27.64, HYPE is just below the neckline level. If it successfully breaks above $28.43, it would confirm the pattern and potentially trigger a fresh rally. The breakout target based on the height of the pattern suggests a move toward $35.17 — a level that also aligns with its all-time high, representing an additional 28% upside from current prices.

What’s Next for HYPE?

This setup places HYPE at a critical technical juncture. A breakout above the neckline could not only confirm the rounded bottom but also signal a broader trend reversal. However, as always in crypto, confirmation is key — a decisive close above $28.43 with a retest would solidify the bullish case.

Ultimately, HYPE’s next move will likely depend on the overall health of the market. Continued strength in Ethereum and Bitcoin could act as a tailwind, helping altcoins like HYPE break through key resistance zones and enter price discovery.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.