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crypto.news 2025-04-14 19:55:45

Hyperliquid token: inverse head & shoulders signals a potential rally towards $25

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 Source: TradingView 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. You might also like: Bitcoin price targets new all-time high in emerging Shark Harmonic setup 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. Read more: XRP price is about to surge, a critical moment for millions of investors

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