Date: Wed, June 11, 2025 | 06:50 AM GMT
The cryptocurrency market has staged an impressive rebound this quarter, with Ethereum (ETH) leading the charge. After climbing over 53% in Q2, ETH is now trading near $2,800, having recently touched a high not seen since February. This renewed momentum is sparking fresh interest across the major altcoins — including Hyperliquid (HYPE).
HYPE has jumped over 8% in the past 24 hours and has now posted a staggering 69% gain over the last month. However, while the rally has been strong, a closer look at the technical setup shows that the token may be reaching a potential turning point.
Source: Coinmarketcap
Bearish Butterfly in Play
The 4-hour chart reveals that HYPE is nearing the completion of a Bearish Butterfly harmonic pattern — a classic technical setup known for indicating short-term exhaustion in uptrends. This pattern typically warns of a possible correction once price reaches the final D-point.
As illustrated on the chart, the D-point of the Butterfly is forming near $42.51, aligning perfectly with the 1.272 Fibonacci extension of the XA leg — a level often considered the “Potential Reversal Zone” (PRZ).
Hyperliquid (HYPE) 4H Chart/Coinsprobe (Source: Tradingview)
At the time of writing, HYPE is trading around $42.48, meaning it has effectively touched the critical resistance zone. If the bearish harmonic setup plays out, the token could see a local pullback.
Key Levels to Watch
Upside Target: If bullish momentum overpowers the PRZ, HYPE could stretch further toward the 1.618 extension level at $45.74, suggesting another leg higher before any meaningful reversal.
Downside Support: If the pattern triggers a correction, traders will be watching the 38.2% Fibonacci retracement of the C to D leg, which sits around $38.63. This marks a potential 9% decline from the current price and is often a strong support area for a technical rebound.
What’s Next for HYPE?
While the broader trend remains bullish, short-term caution is advised as HYPE enters a historically sensitive zone. A clean break above $42.50 with strong volume could invalidate the bearish pattern and open the door for a continuation toward $45+. On the flip side, a rejection from current levels could trigger a healthy pullback toward $38 before the next move.
Traders and investors should monitor price action closely in the coming hours to confirm direction.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
