HYPE Shows Early Bullish Reversal Signs
HYPE is hinting at a possible bullish turnaround. A potential inverse head and shoulders pattern is emerging on its chart. If confirmed,this could signal the end of the current downtrend and pave the way for a bullish move towards $25.
The critical level to watch is the neckline resistance at $17.17.Breaking above this level, especially with increased trading volume, would validate the pattern and likely trigger a bullish move. The target price is $25.05.
Key points:
- Formation of an inverse head and shoulders pattern.
- Neckline resistance at $17.17.
- A bullish target of $25.05.
HYPE has 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.
The neckline at $17.17 is crucial. A clean move above it, especially with rising volume, confirms the pattern. Volume is key—it helps identify real breakouts. Traders should monitor volume closely as the price approaches this area.
A strong breakout above $17.17 opens the path to $25.05. However, a break below the swing low invalidates the setup. If the right shoulder forms and holds, it offers a strong risk-reward entry.
How to trade:
- Wait for a higher low (right shoulder).
- Enter on strength in that region or wait for confirmation.
- Confirmation comes with a close above $17.17 and rising volume.
- Set invalidation below the current swing low for risk management.
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