HYPE stood out as a rare outperformer amid a sharply declining crypto market, reaching a new all-time high at the start of the month.
Since then, the token has pulled back roughly 25% from that peak, and some analysts warn the correction may not be over.
The Bears Take Over
Just days ago, Hyperliquid’s native token surged to a record above $75. Its market capitalization approached $17 billion, placing HYPE among the top 10 cryptocurrencies by market cap.
That rally proved short-lived as a broader bearish market and notable selling pressure weighed on the price. Reports that Arthur Hayes liquidated his positions in the asset added to the downside momentum. At the time of writing, HYPE trades near $56 with a market capitalization around $12.5 billion.
Many analysts warn the worst may still be ahead. Popular X commentator Altcoin Sherpa described a “cool off” as normal, and said a break below $54 could push the price down to about $44. Despite that, Altcoin Sherpa still regards HYPE as one of the stronger long-term altcoin holdings.
Another X user, BATMAN, observed what he called “a very clean head and shoulders pattern,” suggesting a possible drop toward $50. The head and shoulders formation—one large peak flanked by two smaller peaks—is often viewed as a signal for a significant pullback. Sjuul | AltCryptoGems echoed that view, noting that HYPE appears to be trading within a large head-and-shoulders structure and warning that a breakdown would be “not pretty.”
Crypto with Haris ₿ also expects further downside. The trader revealed opening a $30,000 short position on HYPE and forecast a fall into the low $40s if the price loses support under $55.
Not So Quick
Despite bearish technical readings, several on-chain and market indicators suggest bulls could reassert control. A notable development is the recent flow of funds off centralized exchanges into self-custody wallets. That migration reduces immediate sell pressure from exchange-listed holdings and can support price stability.
Meanwhile, Whale Factor on X suggested Hyperliquid may be quietly evolving into “a major powerhouse.” Their data indicates the project accounted for nearly half of all crypto token buybacks last year, creating sustained buy-side pressure that makes HYPE “a very compelling hold” for this cycle.
“When a project generates this much real revenue, it becomes hard to ignore,” the account commented.
In short, HYPE’s recent run to all-time highs attracted profit-taking and technical sell signals that could push the token lower in the near term. However, reduced exchange balances and strong buyback-induced demand offer counterpoints that could stabilize price action and support a renewed bullish case if on-chain trends persist. Traders should monitor support levels around $54–$55, the structure of the head-and-shoulders pattern, and ongoing exchange netflow data to assess which scenario is more likely to play out.