Hyperliquid (HYPE) showed a clear recovery in April, with its price up about 7% since the start of the month.
Still, some well-known analysts caution that the rally could reverse into a double-digit pullback.
Prepare for a Slump?
In recent days, HYPE has traded around $40, and its market capitalization sits just under $10 billion, ranking it as the 13th-largest cryptocurrency. Analyst Ali Martinez warned that the outlook could turn negative in the near term. He argued that HYPE has broken out of a rising wedge, a technical pattern often followed by a correction. According to his view, this pattern points to a decline toward about $31, roughly a 22% drop from current levels.
Another commentator on X, known as Ted, has offered a similar cautionary perspective. He suggested that “big clusters are forming to the downside,” noting that while a short-lived spike to $42–$46 is possible, the most likely outcome afterward is a sell-off rather than continued upside. HYPE briefly entered that $42–$46 range earlier this week before pulling back, leaving open whether Ted’s broader expectation will come to pass.
Technical indicators add weight to the bearish case. The Relative Strength Index (RSI), a momentum oscillator that runs from 0 to 100, is used to gauge overbought and oversold conditions. Values above 70 often signal that an asset has risen too quickly and may be vulnerable to a correction; readings under 30 are typically seen as oversold and potentially attractive buying opportunities. At the time of writing, HYPE’s RSI is around 75, suggesting the token is in overbought territory and could face downward pressure.
- HYPE RSI, Source: RSI Hunter
How About a Further Rally?
Conversely, some analysts remain optimistic and expect more substantial gains. A trader using the X handle Crypto King told nearly 900,000 followers that HYPE could top $50 next month. His technical read emphasizes a clean stair-step structure on the chart with multiple successful support retests, arguing that each bounce has led to a stronger move higher and that the token is currently positioned for a push toward $50.
“HYPE is respecting every level on this move up. The chart shows a clean stair-step structure with three successful support retests. Each bounce leads to a strong push higher. We’re now sitting on the third retest, looking for a move toward $50,” the analysis reads.
On-chain exchange flow data also supports a bullish argument in the short term. Recent reports show net outflows from exchanges exceeding inflows, indicating that holders have been moving tokens off centralized platforms and into self-custody. Reduced balances on exchanges can lessen immediate selling pressure, which often helps sustain price rallies.
- HYPE Exchange Netflow, Source: CoinGlass
In summary, HYPE’s near-term path is contested. Technical patterns and a high RSI point toward a possible correction, while support retests and exchange outflows provide reasons to expect further upside. Traders should weigh both perspectives and consider risk management measures given the potential for volatility.