Hyperliquid hovers near key support at $45–$46, leaving participants split between a bearish breakdown or a bullish rebound above $50.
Hyperliquid has entered a tricky technical phase where short-term weakness collides with a higher time-frame bullish narrative. Price action is stuck between key levels, leaving market watchers split over whether the next move is a deeper correction or a fresh breakout.
Hyperliquid Price Faces Short-Term Pressure
Hyperliquid is trading near $47.25, slightly down on the day. The chart reveals a gradual decline, with intraday attempts to recover quickly sold into. Price is hovering close to a soft support range between $45 to $46, and a breakdown here could invite deeper tests of $42. On the flip side, reclaiming $49 to $50 would turn the narrative back in favor of bulls.
Hyperliquid’s current price is $45.54, down -3.74% in the last 24 hours. Source: Brave New Coin
This cautious setup reflects a market in balance; short-term weakness is clear, but the broader structure still holds above key moving averages on higher timeframes. Participants are watching volume closely, as a sudden spike in demand could flip momentum just as fast as it cooled.
On-Chain Flows Hint at Market Makers Accumulating
Colasama highlighted that the sell pressure isn’t organic, but rather driven by market makers (MMs) on exchanges that listed HYPE. The data shows delta-neutral positioning, suggesting that while visible order flow looks bearish, MMs are actually accumulating underneath. This dynamic often creates deceptive weakness before larger moves.
Hyperliquid’s on-chain data shows market makers quietly accumulating despite visible sell pressure. Source: Colasama via X
Such flows reinforce the idea that current dips may be less about retail capitulation and more about liquidity rebalancing. If MMs continue absorbing supply, HYPE could be setting the stage for a stronger recovery once selling activity exhausts.
Head-and-Shoulders Raises Concerns for HYPE
A clear head-and-shoulders formation is visible on HYPE’s chart, flagged by Web3Vibes. The pattern suggests caution, as losing neckline support around $42 would confirm a bearish continuation, potentially dragging price into the low $35s. This aligns with fading momentum on shorter timeframes. Structural breakdowns don’t always resolve immediately; however, reports like MM’s pushing price lower could side with the bearish developments.
Hyperliquid’s chart reveals a head-and-shoulders pattern, signaling caution with $42 neckline support in focus. Source: Web3Vibes via X
Smart Money Holds Steady Despite Pullback
The recent Nansen data shows that Hyperliquid is cooling, with daily volumes near $570M and some short-term traders trimming positions. The token has slipped from local highs, but institutional players and whales remain steady, with over 50 large holders sitting on $60M+.
Nansen data shows Hyperliquid volumes cooling, but whales and institutions continue holding strong positions. Source: Nansen via X
The second side of the HYPE story is more constructive: buybacks remain active, perp open interest dominance is intact, and infrastructure growth continues. These factors point to strong undercurrents that could limit downside risk. While correction is real, the broader bullish case hasn’t collapsed; smart money appears to be waiting for the next expansion phase.
Contrary View: Higher-Timeframe Structure Still Bullish
JJcycles shared a contrasting perspective, pointing to the 3D candle setup that remains strongly bullish. The chart shows a tightening wedge with breakout potential, targeting $150+ into Q1 2025 if momentum follows through. Larger structure continues to respect trendline support, even with recent volatility.
Hyperliquid’s higher-timeframe wedge, hinting at breakout potential towards $150+. Source: JJcycles via X
This contrary view highlights why dismissing HYPE too early could be risky. Market dips can look threatening in the short term, but higher-timeframe setups suggest room for substantial upside once consolidation is complete. Bulls still see the bigger picture as intact.
Final Thoughts: Bullish Bias or Bearish Outlook?
Hyperliquid’s price action is caught between short-term selling pressure and a bigger bullish narrative. On one side, patterns like the head-and-shoulders formation suggest caution, but on the other, steady whale positions and ongoing buybacks point to strong undercurrents. This push-and-pull leaves market watchers on edge, as any breakout above $50 could quickly flip sentiment back in favor of the bulls.