HYPE is Mirroring Solana's 2021 Breakout Structure, Targeting a 240% Rally by July

HYPE is mirroring Solana's 2021 breakout structure, targeting a 240% rally by July.

Key takeaways:

HYPE is mirroring Solana’s 2021 breakout structure, targeting a 240% rally by July.

Familiar crypto fractals suggest HYPE could spark similar momentum-driven hype.

Hyperliquid's native token, HYPE, is mirroring a strikingly similar price structure to Solana's (SOL) early 2021 breakout—one that preceded a 300% rally.

HYPE chart fractal targets 240% rally by July

In January 2021, Solana broke out of a prolonged consolidation phase just as marketwide interest began accelerating.

The breakout, highlighted by a decisive flip above key Fibonacci retracement levels, triggered a vertical rally that saw SOL jump to the 3.0 Fib retracement line at around $19 from roughly $4.90 in under two months, marking a 291% surge.

Now, in May 2023, HYPE's daily chart shows the same bullish structure following its 270% rebound from $10 lows in April, aligning with its 0.0 Fibonacci retracement line.

On May 23, HYPE broke above its 1.0 Fibonacci retracement level ( ~ $35.88), signifying the initial stages of what could be a rapid breakout phase.

The move is strikingly similar to the early phase of Solana's 2021 breakout.

Furthermore, the relative strength index (RSI) for HYPE has entered deeply overbought territory (above 84), which, while suggesting caution in the short term, also underscores the strength of the current momentum, much like Solana's RSI profile during his 2021 breakout.

If HYPE continues to follow this fractal, the 1.618 Fibonacci extension level (around $51.68) appears to be the next logical target.

Beyond that, the 4.618 level (at around $128) could mark the peak of this potential rally—a 240% move from its recent breakout zone near $35.

Hyperliquid is like Solana and FTX combined — analyst

Popular analyst and commentator Ansem highlights that Hyperliquid's vision is very similar to what Solana and FTX aimed to build during their early partnership: a high-performance, low-cost crypto trading experience.

He argues that, unlike FTX's centralized architecture, Hyperliquid is fully onchain. Nearly 97% of all trading revenue goes directly back to HYPE tokenholders, which will assist the Hyperliquid token to reach "all-time highs soon."

Another analyst, who prefers to remain anonymous, is also bullish on HYPE and sees potential for further upside in the coming months.

He adds that Hyperliquid is quickly becoming a leading decentralized exchange (DEX"), especially in the realm of spot trading.

The analyst suggests that HYPE could rally to new all-time highs by July, especially if it manages to sustain its momentum and capitalize on the prevailing bullish sentiment within the broader cryptocurrency market.

Familiar crypto fractals suggest HYPE could spark similar momentum-driven hype

Traders often seek out familiar patterns and successful blueprints in their decision-making process.

In 2017, Ether (ETH) underwent an almost identical arc to Bitcoin (BTC) in 2013, from the parabolic blow-off top to the deep retracement and subsequent range-bound recovery phase.

This suggests that crypto prices tend to repeat in striking fractals over time.

When traders recognize that HYPE could be completing Solana's 2021 trajectory both visually and fundamentally, it may reinforce their bullish conviction and draw in speculators hoping to catch the next "Solana" moment.

This could propel HYPE to even greater heights, especially if it manages to sustain its momentum and capitalize on the prevailing bullish sentiment within the broader cryptocurrency market.