Is Hyperliquid (HYPE) Preparing for a Bullish Rally Despite Its Downtrend? This AVAX Fractal Says Yes!

Date: Thu, April 03, 2025 | 11:56 AM GMT

The cryptocurrency market is in red today after a wave of negativity stemming from U.S. President Donald Trump’s reciprocal tariffs on 185 countries. The move has shaken global markets, triggering a broad sell-off in risk assets—including cryptocurrencies.

Among the hardest-hit tokens is Hyperliquid (HYPE), the decentralized derivatives exchange token, which has suffered an 17% drop in the last 24 hours. This extends its 90-day correction to a staggering 52%, leaving investors wondering if the worst is over.

But amid the gloom, a historical fractal pattern suggests that HYPE could be on the verge of a major bullish reversal—one that echoes Avalanche (AVAX)’s massive 2021 rally.

HYPE Chart Mirrors AVAX’s Past Price Behavior

According to a fresh fractal chart analysis by crypto analyst JACKIS , Hyperliquid’s current price structure is eerily similar to what Avalanche (AVAX) experienced before its breakout in 2021. The price movements of both tokens appear to be mirroring each other, hinting at a possible explosive rally ahead.

Fractal Comparison: HYPE vs. AVAX

Looking at the chart, we can see that both HYPE (left) and AVAX (right) experienced:

• A strong initial rally, reaching a local peak.
• A prolonged consolidation phase, forming a sideways range (circled in blue).
• A pullback to a key support level (marked around $10.25), which acted as a base for AVAX before its parabolic rise.

In late 2021, AVAX consolidated within this range for weeks before experiencing a sharp decline, only to rebound strongly and surge to new all-time highs. HYPE appears to be following the same trajectory, currently hovering around a similar support zone.

What Could Happen Next?

If the fractal continues to play out, HYPE might follow these potential scenarios:

1. Short-term Retest: A further dip to around $9.32, similar to AVAX’s move before its breakout.
2. Breakout Confirmation: A strong rebound from this level, leading to a parabolic rally similar to AVAX’s rise past $50+.
3. Fractal Repetition: If history repeats, HYPE could mirror AVAX’s explosive move, potentially reaching new highs.

Conclusion

While fractals do not guarantee future price action, the structural similarities between HYPE and AVAX’s past movement are hard to ignore. If HYPE follows the AVAX pattern, a major rally could be on the horizon. However, traders should watch key support levels and breakout confirmations before making any moves.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.