Hyperliquid Token Faces Correction but Analysts See Opportunity in Weakness
Hyperliquid’s native token, HYPE, has seen a notable retracement this week, slipping below the $40 level amid a broader market cooldown. The token, currently trading near $36.65, remains under pressure after failing to sustain its breakout from the rising channel that defined much of its mid-year uptrend.
Technical Analysis: HYPE Finds Temporary Support After Breakdown
The daily chart shows HYPE breaking below a long-standing ascending channel, indicating a potential shift from bullish momentum to consolidation. The asset briefly tested the $34–$35 range, where a cluster of historical demand has provided temporary relief.
BITX market analyst shared that he had “nibbled below $34,” suggesting a strategic accumulation at support, while keeping an eye on the $28 area as the next key downside target.
“The $28 zone aligns with prior liquidity pockets and acted as a strong accumulation base earlier this year,”According to BITX analysts. “If the market maintains structure above this level, HYPE could stabilize and set up for a relief rally back toward $42–$44.”
The chart also reveals that the former support near $44 now serves as resistance, following multiple failed attempts to reclaim it. A sustained move above this zone would be necessary to confirm a bullish reversal and reintroduce upward momentum.
Trading volume has softened in recent sessions, indicating reduced speculative activity. Analysts believe this phase could attract longer-term investors seeking entry points at key support levels.
“Volatility has compressed, and that often precedes a significant directional move,” According to BITX . “If HYPE can defend the green support band near $33–$30, a potential retest of $50 could emerge in the following weeks.”
For now, all eyes are on the $34–$28 support region, which remains critical to defining HYPE’s near-term trend. A clean bounce from this zone could spark renewed bullish sentiment, while a decisive breakdown might expose the $25 level as the next major floor.
As the analyst community monitors price reactions closely, HYPE’s ability to hold support will likely determine whether this correction evolves into a deeper downturn or an opportunity for early accumulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.