HYPE Shows Early signs of Bullish Reversal
HYPE is hinting at a possible bullish turnaround. A potential inverse head and shoulders pattern is emerging on its chart. If this setup is confirmed, it could signal the end of the current downtrend and pave the way for a bullish move towards $25.
the most crucial level to watch is the neckline resistance at $17.17. Breaking above this level, especially with increased trading volume, would validate the pattern. This could trigger a bullish expansion. The projected target is $25.05, calculated by measuring the distance from the head to the neckline and applying it above the breakout.
- Formation of an inverse head and shoulders on HYPE
- Key neckline resistance at $17.17, with volume confirmation
- bullish target of $25.05, with invalidation at the current swing low
HYPE has already formed a left shoulder and a deep head, suggesting a strong retracement. The next step is the formation of a higher low, marking the right shoulder. This structure could signal a trend reversal and an accumulation phase.
The neckline at $17.17 is the critical breakout level. A clean move above it, especially with rising volume, confirms the pattern. Volume is crucial—it helps distinguish real breakouts from fakeouts. Traders should monitor volume closely as the price approaches this area. A strong breakout above $17.17 opens the path toward the $25.05 target.
On the downside, the swing low remains the invalidation level. A break below this low invalidates the pattern. Though, if the right shoulder forms and holds, this zone offers a strong risk-reward entry. For trading this pattern, wait for a higher low to form, enter on strength, and confirm with a close above $17.17 and rising volume. The target is $25.05, with risk management set below the current swing low.
Source: TradingView
