Hyperliquid (HYPE) Diamond Bottom Pattern Mirrors SOL’s Bullish Rally: Is a Rally Ahead?

Date: Tuesday, February 18, 2025 | 08:26 AM GMT

The cryptocurrency market has seen major altcoins struggle to maintain momentum since the November rally, with many experiencing significant corrections. However, Hyperliquid (HYPE), the decentralized exchange (DEX) built on its own Layer-1 blockchain, has defied the bearish market trend, posting notable gains in both weekly and monthly performance.

Despite overall market uncertainty, HYPE has surged 21% in the last 30 days, currently trading at $25 with a market cap of $8.5 billion.

Source: Coinmarketcap

HYPE Mirrors SOL’s Bullish Rally

According to a recent analysis by @AtlasTradez on X (formerly Twitter), HYPE appears to be mirroring Solana’s (SOL) historical bullish rally.

A close look at the HYPE/USDT chart reveals a diamond bottom pattern, a formation that previously signaled a major breakout for SOL during the 2021 bull run. Back then, SOL’s breakout from the diamond bottom pattern led to an explosive rally from its 0.786 Fibonacci level ($3.50) to 4.764 Fib level ($18), marking a 400% surge.

HYPE and SOL Chart/Source: @AtlasTradez (X)

Now, HYPE is following a similar pattern, having broken out of its diamond bottom and currently consolidating between the 0.786 and 1 Fibonacci levels.

If HYPE follows SOL’s trajectory, a successful breakout from this zone could trigger a rally toward the 4.764 Fibonacci level, with a potential target of $107.80, as highlighted in the chart.

What’s Next for HYPE?

The current consolidation phase is critical—a confirmed breakout above the 1 Fib level could be the signal that HYPE is ready for a strong upward move. However, market sentiment, Bitcoin’s dominance, and overall liquidity inflows will play a key role in determining whether this scenario unfolds.

While historical patterns provide valuable insights, it’s important to note that past performance does not guarantee future results.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.