The cryptocurrency market is facing a negative day following new tariffs introduced by U.S. President Donald Trump. Amid the overall decline, Hyperliquid (HYPE) is experiencing a sharp drop.
Reasons for Market Decline
Today, the cryptocurrency market is in the red following reciprocal tariffs imposed by U.S. President Donald Trump on 185 countries. This move has triggered a broad sell-off of risk assets, including cryptocurrencies.
Fractal Analysis of Hyperliquid and Avalanche
According to a recent fractal analysis by crypto analyst JACKIS, Hyperliquid’s current price structure eerily resembles that of Avalanche (AVAX) before its breakout in 2021. The price movements of both tokens appear to mirror each other, hinting at potential explosive rally ahead.
*HYPE and AVAX: Chart Comparison* The chart shows that both HYPE and AVAX experienced:
* A strong initial rally, reaching a local peak. * A prolonged consolidation phase forming a sideways range. * A pullback to a key support level which acted as a base for AVAX prior to its parabolic rise.
Future Scenarios for HYPE
If the fractal continues to play out, HYPE could face several 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 like AVAX’s rise past $50. 3. **Fractal Repetition**: If history repeats itself, HYPE might mirror AVAX’s explosive move, potentially reaching new highs.
While fractals do not guarantee future price action, the structural similarities between HYPE and AVAX’s past movements are difficult to overlook. If HYPE follows the AVAX pattern, a major rally could be on the horizon. However, traders should keep an eye on key support levels and breakout confirmations before making any decisions.
