Chart Analysis
Looking at the daily chart, the story is pretty clear. HYPE has been in a powerful uptrend since April. We saw it hit a recent high of around $49-$50. As expected after such a strong run, a pullback has started.
The price has now retraced to the $42.50 level. This is significant. This exact area was the peak of the previous rally in early July. Old resistance becoming new support is one of the most reliable patterns in trading. The chart shows the price is currently testing this level. The small green arrows (fractals) on the chart confirm these key swing points. This is our entry zone. The setup looks solid for a long position.
Sentiment Analysis (The "Why")
Time to check the news to see if it supports our technical view.
Positive News:
Negative News (The "Noise"):
Overall Sentiment: The sentiment is bullish. The price dip appears to be a technical retracement, while the news flow points to strong fundamentals and growing adoption of the Hyperliquid platform. This combination of a technical setup and positive sentiment gives me the confidence to proceed.
The Trade Plan
It's time to define the levels. We're going long with a market entry now, around $42.50.
Entry Reason: Entering a long position based on the price retracing to a key support level (previous resistance) in a clear uptrend, supported by positive news flow.
Stop Loss (SL): $38.50
Reason: A break below $39.00 would invalidate our trade idea. This level is clearly below the current support zone and below the swing low from mid-July. Placing the SL at $38.50 gives the trade enough room to breathe without risking a catastrophic loss if we're wrong.
Take Profit 1 (TP1): $49.50 (Moonbag Target)
Reason: This is just below the recent all-time high of ~$50. It's a logical first target where the price might face resistance. Hitting this level would be the first confirmation that the uptrend is resuming.
Action: At this point, we take initial profits and move the trailing stop to our entry price to make the rest of the trade risk-free.
Take Profit 2 (TP2): $58.00
Reason: This is a psychological and technical extension level. A common way to project a target after breaking an all-time high is using Fibonacci extensions or measured moves. A move to $58 would represent a significant new leg up.
Action: When TP2 is hit, we move the trailing stop up to the TP1 level ($49.50) to lock in more profit.
Take Profit 3 (TP3): $65.00
Reason: This represents the next major psychological number and a potential area for a medium-term top. It continues the measured move projection from the previous price swings.
Action: When TP3 is hit, we move the trailing stop up to the TP2 level ($58.00).
Take Profit 4 (TP4): $75.00 (Final Target)
Reason: This is our "blue sky" target. In a strong bull market, assets can run much further than expected. $75 is a major psychological milestone and a reasonable final target for this trade.
Action: Close all remaining positions.
Conclusion:
The plan is set. The HYPEUSDT trade offers a good risk-to-reward ratio based on a solid technical setup and bullish sentiment. We enter now and manage the trade according to the plan. Let's see how it plays out.
Looking at the daily chart, the story is pretty clear. HYPE has been in a powerful uptrend since April. We saw it hit a recent high of around $49-$50. As expected after such a strong run, a pullback has started.
The price has now retraced to the $42.50 level. This is significant. This exact area was the peak of the previous rally in early July. Old resistance becoming new support is one of the most reliable patterns in trading. The chart shows the price is currently testing this level. The small green arrows (fractals) on the chart confirm these key swing points. This is our entry zone. The setup looks solid for a long position.
Sentiment Analysis (The "Why")
Time to check the news to see if it supports our technical view.
Positive News:
- "Zircuit Launches 'Hyperliquid' to Simplify and Secure Cross-Chain DeFi Trading" (1 hour ago): This is fresh, positive news. New integrations and launches on the Hyperliquid platform suggest ecosystem growth and user adoption, which is fundamentally bullish for the HYPE token.
- "Whale Deposits $3M USDC for 20x ETH Long" (10 hours ago): This shows that large, sophisticated traders ("whales") are actively using the platform for significant trades. High volume and large positions signal confidence in the platform's reliability and liquidity.
- "Ethereum News: James Wynn Opens 25x Leveraged Position Worth 12 Million on Hyperliquid" (1 day ago): More evidence of heavy hitters using the platform. This kind of activity can attract more users and build a strong reputation.
Negative News (The "Noise"):
- "Hype News: Why is HYPE's price down today?" (3 hours ago): This article is likely just explaining the natural price correction we're seeing on the chart. It's not necessarily bearish; it's just market dynamics. A pullback after a strong rally is healthy and expected. It doesn't change the underlying bullish structure.
Overall Sentiment: The sentiment is bullish. The price dip appears to be a technical retracement, while the news flow points to strong fundamentals and growing adoption of the Hyperliquid platform. This combination of a technical setup and positive sentiment gives me the confidence to proceed.
The Trade Plan
It's time to define the levels. We're going long with a market entry now, around $42.50.
Entry Reason: Entering a long position based on the price retracing to a key support level (previous resistance) in a clear uptrend, supported by positive news flow.
Stop Loss (SL): $38.50
Reason: A break below $39.00 would invalidate our trade idea. This level is clearly below the current support zone and below the swing low from mid-July. Placing the SL at $38.50 gives the trade enough room to breathe without risking a catastrophic loss if we're wrong.
Take Profit 1 (TP1): $49.50 (Moonbag Target)
Reason: This is just below the recent all-time high of ~$50. It's a logical first target where the price might face resistance. Hitting this level would be the first confirmation that the uptrend is resuming.
Action: At this point, we take initial profits and move the trailing stop to our entry price to make the rest of the trade risk-free.
Take Profit 2 (TP2): $58.00
Reason: This is a psychological and technical extension level. A common way to project a target after breaking an all-time high is using Fibonacci extensions or measured moves. A move to $58 would represent a significant new leg up.
Action: When TP2 is hit, we move the trailing stop up to the TP1 level ($49.50) to lock in more profit.
Take Profit 3 (TP3): $65.00
Reason: This represents the next major psychological number and a potential area for a medium-term top. It continues the measured move projection from the previous price swings.
Action: When TP3 is hit, we move the trailing stop up to the TP2 level ($58.00).
Take Profit 4 (TP4): $75.00 (Final Target)
Reason: This is our "blue sky" target. In a strong bull market, assets can run much further than expected. $75 is a major psychological milestone and a reasonable final target for this trade.
Action: Close all remaining positions.
Conclusion:
The plan is set. The HYPEUSDT trade offers a good risk-to-reward ratio based on a solid technical setup and bullish sentiment. We enter now and manage the trade according to the plan. Let's see how it plays out.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.