Hyperliquid just pulled off a strong bounce back into its range after faking out to the downside. In this breakdown, we’ll go over what levels matter next, and where price could be heading if momentum continues.
Hyperliquid (HYPE) has recently shown strong signs of a bullish reversal following a deviation below its range low. With a confirmed reclaim and a clean bullish retest, the current price structure suggests that higher prices are on the horizon. As long as the deviation low remains intact, traders should keep a close eye on this setup as it continues to build bullish momentum.
Key Points:
- Price deviated below $9.34 before reclaiming the range — a failed auction signal
- Bullish retest of the range low aligned with the 0.618 Fibonacci retracement
- Current consolidation could lead to a breakout toward $18.50 — the range high
Deviation of the range low
Hyperliquid established a key swing low at $9.34 before quickly reclaiming the previous trading range. This price action formed what is considered a deviation or failed auction, a signal that sellers were unable to push the market lower and were instead trapped beneath the range.
The reclaim was not just emotional but technical, with a precise bullish retest of the range low that aligned perfectly with the 0.618 Fibonacci retracement level — a well-respected area of interest among technical traders.
Following this reclaim, two consecutive bullish engulfing candles confirmed renewed momentum, pushing price back into the point of control the zone where the highest volume has been traded within this range. This shows that market participants are stepping back in with conviction.
Now, price action finds itself consolidating in the middle of the range, forming a textbook bull flag or shallow pullback pattern. If this resolves upward, it could provide a springboard toward the next major resistance zone.
The next upside target lies at $18.50, the top of the range and another 0.618 Fibonacci resistance level. As long as the deviation low at $9.34 holds, this structure remains firmly bullish. However, traders should watch closely: any breakdown below that level could invalidate the setup and spark a downside move.
For now, the bullish scenario remains valid. This setup offers a strong opportunity for short-term swing traders, but only with proper confirmation. Wait for a breakout above local resistance with strong volume support before entering. Patience in such setups often leads to better trade entries and reduced risk exposure.
