Hyperliquid (HYPE) Price Prediction: Momentum Cools as Price Approaches Make-or-Break Support

Hyperliquid is cooling off after a strong rally, now hovering near key support levels as participants brace for its next directional move.

Hyperliquid’s massive rally from $10 to nearly $49 is now cooling off, with recent price action showing signs of exhaustion. After weeks of bullish momentum, traders like Benaiah and Ali Martinez are pointing to key structural zones, especially the $31.50 area, as the next big battleground.

Hyperliquid Starts to Cool After Strong Rally

Hyperliquid’s run from $10.30 to $48.50 turned heads, but now, the chart is hinting at a slowdown. The recent pullback suggests the uptrend may be losing momentum, at least for now. Price has slipped below what had become a key support shelf, signaling that the parabolic strength could be giving way to a slower, more cautious phase of price action.

Hyperliquid slips below key support as momentum fades, raising caution status. Source: Benaiah via X

Chartist Benaiah shared this shift in tone, noting that HYPE “doesn’t look good” as the structure begins to unravel. While there’s no confirmed breakdown just yet, the mood has shifted from aggressive buying to uncertainty. If $35 to $38 fails to hold, the market may begin hunting for deeper bids.

Crucial Support at $31.50 Comes Into Focus

Following its sharp pullback from the highs, Hyperliquid is now entering a critical zone that could define its next move. As seen on the latest chart from Ali, the $31.50 level stands out as a key structural support, one that previously acted as resistance during its early July breakout. With HYPE currently hovering around $37 and showing signs of increasing volatility, this support line becomes a focal point for both bulls looking to defend the trend and bears watching for a breakdown trigger.

Hyperliquid approaches the $31.50 support zone, a level closely watched for potential trend reversal or breakdown. Source: Ali Martinez via X

Ali Martinez emphasizes the importance of this level, suggesting that a failure to hold $31.50 could open the door to a deeper retracement toward the $28 handle.

Hyperliquid Retests 50-Day MA After Months of Bullish Control

The warning signs continue to stack up for Hyperliquid as it now flirts with losing its 50-day moving average, a level that hasn’t been broken since the $15 range. As pointed out by Big Cheds, the current pullback marks the first real test of this trend indicator in months. The price slipping beneath the 50 MA at $41.00, paired with expanding Bollinger Bands, hints that volatility is back, and not necessarily in favor of bulls.

Hyperliquid tests its 50-day moving average for the first time since the $15 zone, signaling potential trend weakness. Source: Big Cheds via X

What makes this setup more concerning is that previous bounces off the 50 MA led to strong trend continuation, but this time, the candle structure looks weaker, and volume hasn’t followed through. Unless price can quickly reclaim this moving average with conviction, HYPE may find itself slipping into a deeper retracement phase.

Hyperliquid Slides Toward Fibonacci Cluster as Bearish Flow Builds

Building on the recent rejection from its highs, Hyperliquid now finds itself caught in a possible retracement phase, with Fibonacci levels offering a clearer roadmap for what comes next. Crypto analyst Greeny highlights the 0.382 and 0.5 retracement zones, roughly $34.50 and $29.75, as key areas of interest, especially if the broader market stays risk-off through August and September. Momentum-wise, the slope of the current move and rejection near the 0.236 ($40.40) level shows how each lower high is gaining weight.

Hyperliquid dips toward key Fibonacci zones at $34.50 and $29.75 as bearish momentum builds. Source: Greeny via X

Amid the Dip, a Supply-Driven Rebound Narrative Emerges

While technicals point to short-term pressure, Hyperliquid’s burn mechanics are quietly building a narrative that could catch many off guard. As shown in Sakrexer’s post, nearly 1 billion HYPE tokens are in total supply, but a sizable portion continues to shrink through automated transaction burns. With only 8.24% of circulating supply in the assistance fund and a fixed max cap, each dip, especially toward the $34 or $28 zones, could accelerate that deflationary engine.

Hyperliquid’s token burn mechanism gains traction as supply tightens amid the ongoing dip. Source: Sakrexer via X

This ties in tightly with the ongoing pullback noted by Greeny and Big Cheds. If prices do revisit lower Fibonacci zones or lose the 50-day MA, the silver lining is structural: cheaper prices mean more tokens burned, less float on the market, and a potentially sharper rebound when demand returns.

Final Thoughts: Pullback or Pause Before a Bigger Move?

Hyperliquid’s recent dip may look concerning, especially with the price now flirting around key supports and the 50-day MA under pressure. But under the hood, the deflationary token mechanics remain intact, burns continue, float tightens, and dips like these may only be making the rebound sharper when demand kicks back in. If the $31.50 level holds and sentiment turns risk-on again, this could be more of a reset than a reversal.

While caution is warranted in the near term, HYPE still sits in a structurally interesting position. It will be crucial: reclaiming the 50 MA and holding above the $28 to $31 range could shift the tone fast. For now, participants are watching closely to see if this is a deeper correction.