Hyperliquid (HYPE) Price Prediction: Rising Channel at Risk as Market Watches Critical Levels

Hyperliquid is testing the key $40 support zone, with participants watching closely to see if momentum holds or breaks into lower levels.

Hyperliquid is sitting at a crucial crossroads, with price pressing against the $40 support that has acted as a pivot before. Participants see this level as the line between recovery and deeper downside.

Technical Bounce Zone Still in Play for HYPE

Hyperliquid price is testing the lower edge of its rising channel, where past reactions have triggered bounces. Indicators in the chart, such as RSI cooling off, add weight to this being a key level for a potential reset. If this zone holds, $48 to $50 could come back into play.

Hyperliquid HYPE tests its rising channel support, with price eyeing $48–$50 if the bounce holds. Source: JJcycles via X

On the flip side, crypto analyst JJcycles believes losing this channel support would put the structure under pressure, opening downside towards $40. It’s a make-or-break area where participants are watching closely for confirmation, with liquidity clusters sitting just beneath the current price.

Bearish Retest Threatening Lower HYPE Levels

The recent retest around $43 to $44 indicates that sellers are stepping in, and failure to reclaim this zone could signal another leg lower. Fibonacci retracement levels line up around $42, making it the critical line in the sand.

HYPE struggles at the $43–$44 zone, with $42 marked as the critical support to watch. Source: ShangoTrades via X

Breaking below here exposes the $38 to $40 range, which is the next key supportive zone. For now, momentum sits with the bears unless buyers step back above $45 with conviction, as volume hasn’t shown the kind of spike bulls need for a clean reversal.

Hyperliquid Price Prediction: Testing $40 Support

Momentum has dragged the price closer to the $40 level, which is shaping up as the next battleground. Volume readings and open interest trends suggest caution; if $40 holds, it could stabilize the short-term outlook.

Hyperliquid approaches the $40 battleground, a key level that could decide whether bulls defend the broader uptrend. Source: ByzGeneral via X

But if $40 gives way, the broader trendline from early 2023 risks breaking, shifting the bias bearish. ByzGeneral views this point as crucial in determining whether the larger bullish structure can remain intact, with longer-term targets, such as $55 to $60, hinging on a recovery from here.

Concerns Around HYPE’s Market Share and Unlocks

Narrative-wise, headwinds remain. Hyperliquid’s dominance has been slipping as newer platforms compete, and an upcoming token unlock in late November could release steady supply pressure. That combination makes short-term sentiment shaky.

HYPE faces pressure from slipping market share and looming token unlocks, keeping short-term sentiment cautious. Source: Tindorr via X

Even so, catalysts like HIP-3 or further incentives could flip sentiment quickly. The market is reassessing, but higher-timeframe bulls still argue that if incentives return, the long-term case hasn’t collapsed; it’s just waiting for fresh momentum to kick in.

Contrary View: Assistance Fund Support

On the other side, ray tio highlights that the Hyperliquid Assistance Fund is stepping in with size, now holding 32.3M HYPE worth $1.4B, all market bought. That kind of backing provides a safety net against deeper downside.

Hyperliquid’s Assistance Fund now holds 32.3M HYPE worth $1.4B, offering strong backing against deeper downside. Source: ray tio via X

It signals confidence from the core team, suggesting that while volatility is real, the ecosystem still has strong support. For many, this underpins the idea that the bigger picture remains constructive despite near-term risks, and dips could be seen as opportunities rather than trend breaks.

Final Thoughts

Hyperliquid price is now testing the $40 support, a level that lines up with both Fibonacci retracement zones and the broader channel structure. Holding above this band would allow momentum to reset and open the door for a move back into $45 to $48. Failing here, however, exposes the $38 area, where the next strong demand zone sits.

From a technical view, this is a make-or-break zone. A bounce from $40 keeps the rising trendline intact and preserves the longer-term target towards $55 to $60.