"Entering a growth phase unlike Bitcoin"...Hyperliquid, countdown to surge from $60

▲ Hyperliquid (Hyperliquid, HYPE)/AI-generated image

An analysis suggests that Hyperliquid (Hyperliquid, HYPE) has moved beyond the recovery phase and entered a full-fledged growth period. Unlike Bitcoin (Bitcoin, BTC), HYPE recently broke through its previous resistance with strong breakout candles, entering a price discovery phase in the low $60s.

U.Today pointed to HYPE as one of the strongest charts in the market as of May 23 (local time). After breaking through its previous resistance in the high $40s, HYPE formed strong, almost vertical candles, and its momentum significantly accelerated.

The arrangement of moving averages also supported the bullish trend. The 200-day moving average is rising below the price, and short-term moving averages are positioned significantly above the medium-term moving averages. As increased trading volume and strong candle bodies appeared together, this bullish alignment was typically interpreted as a signal favoring trend continuation rather than trend exhaustion.

The uptrend line from the March low is also still intact. All corrections during the ascent found support above the previous swing low, which was presented as a confirmation of strong dip-buying interest. The fact that HYPE did not enter a deep correction phase during this rally was also mentioned as a signal of aggressive accumulation.

However, there was also an assessment that short-term overheating concerns have increased. This is because past trends showed that as the Relative Strength Index approached the overbought region of 80, the likelihood of a short-term cool-down increased. As recent candles have significantly extended above fast-moving averages, an analysis suggested that such parabolic rises are unlikely to sustain for long without a brief consolidation.

The key lies in whether HYPE will succumb to a sharp mean reversion or establish a trend continuation structure above the breakout zone. Even if a correction occurs, if buyers defend the $55 to $58 range, the uptrend is likely to continue. Conversely, after a vertical ascent, lower support often weakens, and rapidly losing that range could trigger a sharp sell-off.

Structurally, HYPE has confirmed a resistance breakout, higher highs and lows, and the recovery of key moving averages. Unless this breakout completely fails within the next few trading days, HYPE is behaving like an asset entering a strong price appreciation phase, rather than a speculative bounce within a larger downtrend.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*