Hyperliquid is hovering near key support levels, with participants eyeing bullish reversal signals that could mark the start of its next major breakout phase.
Despite recent volatility, Hyperliquid HYPE continues to attract strong market attention as participants eye signs of a potential turnaround. The asset’s consistent network activity and heavy on-chain fee generation reflect sustained demand, even as price cools near key supports.
Hyperliquid’s Momentum Could Turnaround
Market sentiment around HYPE continues to lean bullish, as highlighted by NMTD8, who believes the asset is only weeks away from entering its “escape velocity” phase. Despite recent pullbacks, this view suggests dips are part of a healthy accumulation phase within a larger uptrend.
Structurally, HYPE has maintained a strong price structure, and any sustained recovery above $48 to $50 could trigger renewed buying momentum. With volume clustering around these support regions, this phase resembles a textbook re-accumulation zone.
Fundamentally, growing ecosystem momentum and consistent trading activity are fueling the optimism that HYPE could soon reclaim its upward trajectory towards new cycle highs.
Technical Setup: Dip Zone Aligns with Fibonacci Support
The latest chart shared by Crypto Anbu points out that HYPE’s local top formation has likely concluded, leading to a short-term retracement into the 0.618 Fibonacci zone around $38 to $39, an area that historically aligns with high-probability bounce setups.
HYPE retraces into its 0.618 Fibonacci support zone, where traders anticipate a potential rebound towards $50 and $58 targets. Source: Crypto Anbu via X
If Hyperlqiuid successfully holds this Fib confluence as support, upside targets reappear near $50 and $58, corresponding to prior swing highs. This HYPE zone not only offers technical alignment but also reflects an area of strong volume accumulation, hinting that buyers could step back in after this cooling period. A healthy correction here may set the stage for the next impulse wave upward, continuing the broader trend.
Downtrend Structure Still Dominant for Now
Despite the project’s strength, Hyperliquid HYPE remains locked within a series of lower highs (LHs) and lower lows (LLs), characteristic of a short-term downtrend. The chart shows repeated rejections at descending resistance zones, confirming the sellers’ control as long as price remains below $50 to $52.
Hyperliquid continues to trade within a descending channel, with $50–$52 acting as key resistance levels to confirm any potential trend reversal. Source: Sjuul via X
However, this Hyperliquid structure also provides a clear invalidation point for bears, a break above the recent LH would mark the first sign of structural reversal. Until then, participants are likely to view each rally as a retest opportunity. The trend remains corrective in nature, but consistent support reactions near $40 keep the longer-term bullish thesis alive.
On-Chain Data Reinforces Hyperliquid’s Leadership
Recent on-chain metrics shared by Hypurr2537 reveal that Hyperliquid currently leads all major blockchains in daily fee generation, surpassing Tron, Solana, and even Ethereum in the last 24 hours. This indicates strong protocol activity and consistent user engagement despite broader market uncertainty.
Hyperliquid leads in daily fees, surpassing major blockchains and signaling strong on-chain activity. Source: Hypurr2537 via X
From a technical standpoint, HYPE’s strong on-chain performance adds a fundamental layer of support to the price structure. Elevated network fees typically correspond to active trading and sustained liquidity inflows, which often precede price recoveries. As the project continues to top the charts in fee volume, the on-chain data support the thesis that fundamentals are outpacing short-term price weakness.
Hyperliquid Price Prediction: Inverse Head and Shoulders in Play
Don’s analysis highlights a clear inverse head and shoulders pattern emerging on the HYPE chart after a breakdown from its rising wedge structure. The left shoulder, head, and right shoulder formations are now visible, with neckline resistance forming near $48 to $50, a critical zone to reclaim for bullish continuation.
Hyperliquid forms an inverse head and shoulders pattern, with a breakout above $50 potentially targeting the $68–$70 range. Source: Don via X
If this reversal pattern confirms with a breakout and volume expansion, the measured target sits near $68 to $70, aligning with the green projection line. Below, the $42 support remains the key defense level for bulls. This technical combination, a bullish pattern following wedge exhaustion, suggests that HYPE may be forming its medium-term bottom, with recovery potential growing stronger as structure matures.
Final Thoughts
Across multiple analyses, HYPE appears to be at a pivotal point, technically corrective but fundamentally accelerating. On-chain dominance, structural support zones, and early reversal patterns all suggest that the groundwork for the next bullish leg is forming.
If buyers defend the $38 to $42 zone and confirm the inverse head and shoulders breakout, Hyperliquid price prediction could quickly target the $60+ levels. The ecosystem’s rising fee generation and continued market share growth provide strong validation for market watchers anticipating a sustained upward cycle.
