HYPE Breaks Through Key Formation Targeting $52, Capital Flow Divergence Suggests 68% Upside Potential

Gate News, March 20 — Hyperliquid’s ecosystem token HYPE remains strong after breaking out of a symmetrical triangle that had been forming for several months. The current price is around $39.7, with a technical target of $52.27, representing a potential increase of approximately 68%. This breakout was driven by the completion of a convergence pattern since late January, combined with about a 19% rally over the past week, making HYPE one of the recent focal points in the crypto market.

From a technical perspective, HYPE has broken above a key trendline resistance. The mid-term upside target is around $47.40, which coincides with a Fibonacci extension level and a zone of heavy short liquidations. Once the price volume breaks through the $43–44 range, the $45–48 zone could trigger a chain of short liquidations, accelerating the upward momentum and pushing the price closer to the $50 mark.

However, on-chain fund flow signals raise some concerns. The Chaikin Money Flow (CMF) indicator is currently at -0.08, remaining below zero, indicating net outflows. Despite the price reaching new highs, the CMF continues to decline, forming a classic bearish divergence. This suggests that the current rally is more liquidity-driven rather than supported by genuine buying interest. If the CMF cannot recover above zero and stabilize, the sustainability of the rally may be limited.

Structurally, the $38.42 level is a short-term key support, aligning with the Fibonacci 1.0 level. A daily close below this level would weaken the breakout thesis, potentially leading to a retracement toward around $34.59. On the upside, a breakthrough of the $42.66 resistance is needed to open the path toward above $47.

Fundamentally, Hyperliquid launched prediction markets and options features in February 2026, providing potential use cases for HYPE. If market risk appetite improves, it could reinforce bullish expectations.

Currently, HYPE is in a zone of “strong structure but weak funds,” with short-term focus on breaking through the $40–43 range. In the medium term, monitoring the fund flow indicators for recovery will be crucial to assess whether there is sustained momentum to push beyond $50.