Hyperliquid (HYPE) on the Verge: Could It Drop to $25?
HYPE encounters crucial resistance at $36 while traders anticipate either a breakout toward $50 or a decline to $25 as key price levels are evaluated.
Hyperliquid (HYPE) has seen a slight recovery after dipping below $30 last week, currently trading around $36 with a 2% increase in the last 24 hours and 4% over the week.
The recent bounce comes as the market tests a critical level that may dictate HYPE’s next direction.
Testing Resistance After Bearish Pattern
HYPE is now challenging the $36 mark, which acted as the neckline for a head-and-shoulders formation that transpired over recent months. Initially, the price peaked in August, reached a higher high in September, and then saw a lower high in November, hinting at a potential trend reversal.
After falling below the neckline, the price is testing this level again. Current trading suggests that this area is serving as resistance. If HYPE fails to reclaim this level, it may maintain its downward trend, with potential support around $30, $27, and $25. Analyst Ali Martinez stated,
“Hyperliquid $HYPE is retesting the breakdown zone before a potential move toward $25.”
“Hyberliquid $HYPE, regresando al área de ruptura antes de un posible movimiento hacia $25.”
Concurrently, HYPE has rebounded from the lower Bollinger Band near $30 and is approaching the 20-day moving average at $37, a crucial test. Surpassing this level could pave the way toward $43, whereas a rejection could lead prices toward $31.
The MACD indicators are hinting at an early momentum shift. Though the MACD line is slightly above the signal line and the histogram is showing positive signs, both lines remain below zero, indicating the overall trend isn’t firmly established. This suggests a possibility of short-term recovery but not yet a confirmed reversal.
Optimistic Outlook: A Path to $50?
Analyst Make Sense offered an optimistic perspective, noting HYPE’s early signs of strength following a lengthy period of weakness. They remarked,
“$HYPE just formed its first solid rebound after a month of pressure.”
“$HYPE, acaba de formar su primer sólido rebote tras un mes de presión.”
If HYPE reclaims the $37–$38 range, it may lead to further upward movement. The next price target could be in the $41–$42 range, with momentum shifting around $44. Surpassing this could take prices to an upside target between $48 and $50, areas that are expected to hold untested liquidity.
Price action around the $36–$38 zone is crucial. A decisive move above this range could encourage recovery, while a rejection may shift focus back to $25.
Source: TradingView
Tags: Hyperliquid (HYPE)
