Hyperliquid’s recent surge to $43 sparked excitement among traders, but the upward trajectory has since lost momentum, prompting questions about the token’s next move. Despite a strong rally over the last 48 hours, HYPE now faces structural resistance and growing bearish pressure, suggesting that the short-term outlook may be more complex than originally anticipated.
While the recent price action was encouraging, with HYPE gaining 4.3% in the past day, the rally encountered a ceiling when Bitcoin was rejected at the $116,000 resistance level. This rejection sent ripples across the altcoin market, triggering a swift 7.64% retracement in HYPE’s value—from its local high of $43.14 to $39.85 within six hours. Despite the drop, trading activity intensified, with volume climbing 30%, indicating that traders remain actively engaged even amid volatility.
Examining the daily chart, HYPE remains within a bearish market structure. The shift began on September 25 when prices dipped below the $42.39 swing low, erasing bullish structure and establishing downward momentum. Although there was a brief push to $51 shortly after, it failed to create a higher high or reclaim bullish structure. The price has since hovered under key resistance levels, including the $44.57 Fibonacci level and the $47.1–$50.85 supply zone, where sellers have historically stepped in.
Further downside potential is evident as the Relative Strength Index (RSI) on the daily timeframe hovers around 41, reflecting weak bullish momentum. Additionally, the On-Balance Volume (OBV) has been in a steady decline since mid-September, signaling consistent selling pressure. Together, these indicators reinforce a bearish sentiment among market participants.
The hourly chart paints a slightly different picture, showing a short-lived bullish reversal over the past two days. However, this momentum appears to be fading as the price tests the $39.64 swing low. If the price closes below this level on the 1-hour timeframe, it could trigger a drop toward the $36 demand zone. A breach below $36 would likely open the door for further losses, potentially dragging HYPE down to $33.10 or even $31.18—levels identified as critical daily support zones.
From a technical perspective, the $32.95–$42.46 zone represents a price imbalance that could act as a magnet for bearish moves. Unless buyers reclaim the $51.4 swing high and push above key resistance levels, the broader trend remains tilted in favor of sellers.
In terms of market sentiment, the increased trading volume suggests that interest in HYPE remains strong, even during pullbacks. However, volume alone does not guarantee bullish continuation—especially when paired with declining OBV and a weakening RSI. Caution is warranted for traders looking to enter long positions at current levels.
Looking ahead, HYPE traders should monitor the following key levels:
– Resistance: $44.57, $47.1, $50.85, and the pivotal $51.4 swing high. Only a breakout above these levels would signal a return to bullish control.
– Support: $39.64 (short-term), $36 (demand zone), $33.10 and $31.18 (stronger daily supports). A breakdown below these could confirm a deeper correction.
In addition to technical factors, broader market conditions will play a crucial role in determining HYPE’s trajectory. Bitcoin’s performance around the $116,000 mark will likely influence sentiment across the altcoin space. If BTC recovers and breaks through resistance, it could provide tailwinds for HYPE to reclaim higher ground.
Also worth noting is Hyperliquid’s performance on decentralized exchanges. According to recent data, the platform has maintained robust trading volumes throughout October and continues to rank among the top chains by transaction fees. This suggests strong underlying demand for the platform’s services, which could provide long-term support for the HYPE token, even if short-term price action remains volatile.
For swing traders, the current environment may favor a cautious approach, with a focus on key support levels for potential re-entry. Meanwhile, short-term traders should remain vigilant for intraday breakdowns or bullish reversals, particularly around the $39–$40 range.
To summarize, while HYPE has shown signs of strength, the token is not out of the woods yet. The bearish daily structure, declining momentum indicators, and resistance-heavy zone between $44 and $51 suggest that the path upward is littered with obstacles. Bulls will need to decisively reclaim higher ground to shift sentiment, while bears may capitalize on any weakness to push prices lower. As always, traders should weigh both technical and macro factors before making decisions in this highly volatile market.