Hyperliquid (HYPE) Tests $36 Resistance as Traders Eye $50 Breakout or $25 Drop
Introduction: Hyperliquid at a Critical Juncture
Hyperliquid (HYPE) is capturing significant market attention as it confronts a pivotal technical level. After a recent recovery from a dip below $30, the token is now trading around $36, testing a resistance zone that could dictate its trajectory for the coming weeks. This price action places HYPE at a crossroads, with analysts charting two distinct paths: a bullish breakout targeting the $50 region or a bearish rejection leading to a retest of support near $25. With a 2% gain in the past 24 hours and a 4% increase over the last 7 days, the modest rebound has set the stage for a decisive move. This article provides an in-depth analysis of the technical patterns, expert commentary, and key levels every HYPE trader should monitor.
Retesting the Breakdown Zone After a Bearish Pattern
The current price action around $36 is not an arbitrary level; it represents a critical technical retest. HYPE is revisiting the neckline of a head-and-shoulders pattern that developed over recent months. This classic chart pattern, often indicative of a trend reversal, formed with an initial peak in August, a higher high in September, and a lower high in November. The subsequent break below the neckline signaled a shift in momentum, and the price has now returned to this former support level, which is now acting as resistance.
A failure to reclaim this zone could reinforce the prevailing downward trend. Chart projections based on this pattern indicate potential support levels near $30, $27, and $25. Analyst Ali Martinez echoed this technical perspective, stating, “Hyperliquid $HYPE is retesting the breakdown zone before a potential move toward $25.” The price’s interaction with this level is therefore one of the most critical factors for determining short-term direction.
Momentum Indicators Show Tentative Signs of Life
Beyond pure price levels, momentum indicators provide additional context for HYPE’s current state. The token has bounced from the lower Bollinger Band near $30 and is now approaching the 20-day moving average, situated at approximately $37. This moving average now serves as another immediate test for the asset. A decisive break above it could open the path toward $43, while a rejection could see the price slide back toward $31.
The Moving Average Convergence Divergence (MACD) indicator offers a nuanced view. It shows early signs of momentum turning positive, with the MACD line moving slightly above the signal line and the histogram shifting into positive territory. However, both lines remain below the zero line, indicating that while short-term recovery potential exists, the overall trend cannot yet be classified as strongly bullish. For traders, this suggests cautious optimism rather than a confirmed trend reversal.
Bullish Scenario: Mapping a Recovery Path to $50
Despite the bearish technical structure, some analysts project a more optimistic outcome. Analyst Make Sense highlighted that HYPE has demonstrated early strength after an extended period of weakness, noting, “$HYPE just formed its first solid rebound after a month of pressure.”
Their analysis outlines a clear recovery path contingent on HYPE reclaiming key levels. The immediate hurdle is the $37–$38 area. A strong and sustained move above this zone could trigger further upside momentum, with the next target situated between $41 and $42. Beyond that, a momentum shift around $44 would be required to propel HYPE toward its final bullish target range of $48 to $50—an area described as holding untested liquidity. This scenario remains entirely dependent on HYPE’s ability to conquer and hold above the current resistance.
Strategic Conclusion: Key Levels to Watch for HYPE’s Next Move
Hyperliquid (HYPE) is at an inflection point defined by clear technical parameters. The battle between bulls and bears is concentrated at the $36-$38 resistance zone, a level steeped in significance due to its role as the head-and-shoulders neckline. The outcome of this test will likely set the tone for HYPE’s medium-term trend.
Traders and investors should watch for one of two primary scenarios to unfold:
- Bullish Confirmation: A daily close above $38, confirmed by rising volume, would invalidate the immediate bearish outlook and open the door for a run toward $43 and potentially $50.
- Bearish Continuation: A rejection from the current resistance level, especially if coupled with a break below the recent low near $30, would reaffirm the downward trend and put the $25 support target firmly in play.
The broader market context remains crucial. While HYPE’s on-chain metrics and fee dominance have been strong historically, its short-term price action is currently governed by these technical dynamics. For now, patience and disciplined level-watching are paramount. The next significant price move for Hyperliquid will be determined by its ability to either power through or falter at this critical technical juncture.
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Tags: Hyperliquid (HYPE), Price Analysis