Hyperliquid is approaching a decisive technical phase after one of the deepest corrections recorded since the strong expansion that began from the April lows. On the daily chart, HYPE is trading near $55.60, following an attempted rebound from the area between $51.00 and $52.92. The recovery has improved short-term momentum, but it has not yet repaired the broader market structure.

The current position of the price is technically significant. HYPE is trading almost exactly around the faster moving average, while remaining below the slower moving average and below the 0.5 Fibonacci retracement at $57.54. This combination creates an immediate resistance cluster between approximately $57.50 and $60.02.

The market is therefore testing whether the recent bounce is the beginning of a sustainable recovery or only a temporary reaction inside a broader corrective trend.

The distinction is important. A market can produce a sharp rebound from oversold conditions without reversing its dominant direction. In HYPE’s case, momentum indicators are beginning to improve, but price structure, moving averages and overhead liquidity continue to suggest that sellers retain an important technical advantage.

For the bullish side, the first task is not simply to defend the current price. Buyers need to reclaim the $57.54–$60.02 region and then prove that the market can remain above it. For the bearish side, the critical objective is to force the price back below $52.92, which would invalidate the immediate rebound and expose the lower Fibonacci support near $46.33.

At present, the chart does not provide a confirmed directional reversal. It presents a market attempting to stabilize after a substantial decline, but still trading below the levels required to invalidate the bearish daily structure.

🔍 Key Levels and Current Structure

HYPE’s broader technical structure originates from the major advance that developed from the April low near $37.94. From that area, the market entered an aggressive markup phase, eventually reaching approximately $77.14.

That expansion represented a gain of more than 100% from the reference low. However, the price was unable to consolidate near the upper region of the range. Multiple attempts to maintain acceptance above $70.00 failed, and the market subsequently formed a sequence of lower highs.

This loss of momentum was followed by the breakdown of the ascending trendline that had supported the advance from the April bottom. The trendline break was one of the first structural warnings that the previous bullish rhythm was weakening.

After losing the diagonal support, HYPE also moved below several horizontal levels and below its principal daily moving averages. The correction accelerated once the market failed to defend the region between $62.17 and $67.89.

The current daily structure can therefore be divided into 3 phases:

1. A strong bullish expansion from $37.94 to $77.14.
2. A distribution and weakening phase between approximately $67.89 and $77.14.
3. A corrective phase characterised by lower highs, lower lows and a move toward $52.92.

The latest bounce began after the market briefly traded below the 0.618 Fibonacci retracement at $52.92. Buyers managed to defend the deeper area around $51.00, producing several constructive daily candles and pushing HYPE back toward $56.00.

However, the rebound has now reached its first meaningful obstacle. The price has tested the region near $57.20, but the latest candle shows rejection, with an opening near $56.94, a high around $57.20, a low near $55.51 and a close around $55.60.

This daily candle confirms that supply remains active before the market can even fully reclaim the $57.54 Fibonacci level.

Primary resistance levels

The first resistance is located between $57.54 and $57.91. This zone combines the 0.5 Fibonacci retracement and the slower daily moving average visible on the chart.

The second resistance is located at $60.02. This is a major horizontal level that previously acted as both support and resistance. It also represents the lower boundary of a broader high-volume area.

The third resistance is located at $62.17, corresponding to the 0.382 Fibonacci retracement. A daily close above this level would represent a more meaningful improvement in the market structure.

The next major resistance is located around $67.89, corresponding to the 0.236 Fibonacci retracement and a substantial volume-profile concentration. This is the level that would need to be reclaimed to seriously challenge the broader bearish structure.

Above $67.89, the market would encounter additional supply near $70.00–$72.00, followed by the previous macro high at $77.14.

Primary support levels

The first immediate support is located between $55.00 and $55.60. This region includes the current market price and the faster moving average. It is a short-term support rather than a confirmed structural floor.

The next major support is the 0.618 Fibonacci retracement at $52.92. This is currently the most important defensive level for the recent rebound.

Below $52.92, the market would return to the local demand region between approximately $50.50 and $51.50. This was the area from which the latest recovery originated.

If that region fails, the next major downside reference is the 0.786 Fibonacci retracement at $46.33.

The final macro support visible on the chart is located near $37.94, corresponding to the origin of the previous bullish expansion.

Technical level	Current function
$77.14	Previous major high
$70.00–$72.00	Upper supply and volume zone
$67.89	0.236 Fibonacci and major structural resistance
$62.17	0.382 Fibonacci resistance
$60.02	Major horizontal resistance
$57.54–$57.91	0.5 Fibonacci and moving-average resistance
$55.00–$55.60	Immediate short-term support
$52.92	0.618 Fibonacci and key structural support
$50.50–$51.50	Local demand zone
$46.33	0.786 Fibonacci support
$37.94	Origin of the broader bullish movement

📊 Moving Averages and Trend Dynamics

The moving averages provide one of the clearest indications that HYPE has not yet completed a daily bullish reversal.

The faster moving average is currently located near $55.62, almost exactly where the price closed. This means the market is testing its first dynamic equilibrium level.

The slower moving average is positioned near $57.91, above both the current price and the faster average. The configuration remains bearish because the faster average is below the slower average, while both have recently been pointing downward.

This alignment reflects the decline that developed during the second half of July. It also indicates that the average price paid by recent market participants is still above the current spot value.

The faster moving average can offer temporary support, but holding it for a single session is not sufficient. A stronger signal would require several daily closes above the faster average, followed by a recovery of the slower average.

The region between $55.62 and $57.91 should therefore be treated as a transition area.

Below the region, sellers retain short-term control. Inside the region, the market remains uncertain. Above the region, the probability of a test of $60.02 begins to increase.

The slope of the averages is also important. Even if the price temporarily moves above $57.91, the slower moving average may continue to decline and act as dynamic resistance. A genuine trend improvement would require the slower average to flatten and eventually begin turning upward.

At present, that process has not occurred.

The moving-average structure consequently supports the interpretation that HYPE is experiencing a relief rebound inside a corrective regime rather than a confirmed return to the previous bullish trend.

For this interpretation to change, HYPE would need to reclaim the slower average, hold above $57.54–$57.91, and establish a new higher low above the $52.92 support.

Without that sequence, the market remains vulnerable to another rejection.

🧱 Volume Profile, Market Liquidity, and Overhead Supply

The visible volume profile shows that a substantial amount of historical trading activity occurred above the current price.

The largest concentrations appear between approximately $60.00 and $70.00, with particularly significant participation near the upper part of that region. This means many positions were opened while HYPE was trading at higher prices.

When the market returns toward these areas after a decline, participants who are trapped or positioned at a loss may use the rebound to reduce exposure. This can create overhead supply.

The first important volume cluster begins near $57.50–$60.00. The market must absorb this supply before a more sustained recovery can develop.

Above $60.02, the density of the profile increases. This suggests that even a breakout above the first resistance would not immediately place HYPE in an unrestricted upside environment. The price would still need to work through the liquidity and previous transactional activity between $60.00 and $68.00.

This is why a single daily candle above $57.54 would not be sufficient to define a complete reversal.

A more constructive development would involve acceptance above $60.02, followed by consolidation and the formation of a higher low. That behaviour would demonstrate that buyers are not merely reacting from support but are willing to transact at progressively higher prices.

The volume profile below the current market is comparatively less dense, particularly once the price moves below the $50.00–$52.92 region.

This matters because low-volume areas can generate faster directional movement. If $52.92 fails decisively, HYPE could move relatively quickly toward $50.00, followed by $46.33, because there may be less historical activity available to slow the decline.

The liquidity map therefore appears asymmetric.

Above the current price, HYPE faces several layers of supply and historical volume. Below the current price, the market has an important support near $52.92, but a breakdown could expose a thinner zone.

This does not guarantee a bearish outcome. It simply means that buyers need to demonstrate stronger and more persistent demand to overcome the resistance structure than sellers would need to demonstrate to trigger a downside continuation below support.

Liquidity is also likely to be concentrated around obvious technical levels.

Short-term liquidity may be located above $57.20–$57.91, where recent local highs and the slower moving average converge. A move above this region could trigger the closure of short positions and temporarily accelerate the recovery toward $60.02.

Conversely, sell-side liquidity is likely located below the recent lows around $51.00–$52.00. A breakdown below these lows could trigger stops and increase bearish volatility.

The market is currently positioned between these liquidity pools. That placement increases the probability of volatility but does not yet identify which side will be taken first.

🕯️ Candlestick Behaviour and Short-Term Price Action

The rebound from the recent low has produced several constructive candles. HYPE moved from approximately $51.00 toward $56.00, forming a short sequence of higher daily lows.

This is the first evidence that selling pressure is no longer expanding at the same rate observed during the previous decline.

However, the latest candle introduces caution.

The price opened near $56.94, tested $57.20, but failed to hold the advance and closed near the daily low at approximately $55.60. This creates a rejection candle directly beneath the $57.54–$57.91 resistance cluster.

The rejection is technically relevant because it occurred at the first major level that buyers needed to reclaim.

A single negative candle does not invalidate the entire recovery, but it demonstrates that supply remains active. The next several sessions will reveal whether the rejection is only a short-term pause or the beginning of another bearish rotation.

A constructive response would involve HYPE holding between $54.80 and $55.60, forming a higher low and returning above $57.54. That would preserve the sequence of improving short-term lows.

A less constructive response would involve a daily close below $54.50, followed by renewed pressure toward $52.92. Such a move would weaken the rebound and suggest that buyers were unable to build acceptance above the faster moving average.

The shape of the recovery is also important. The movement from the bottom has been relatively gradual rather than impulsive. This suggests improving demand, but not yet aggressive accumulation.

Strong trend reversals often display broad-range bullish candles, expanding volume and rapid recovery of previous resistance levels. HYPE has not yet produced that type of confirmation.

Instead, the price is climbing into resistance while daily volume remains moderate. This supports a cautious interpretation.

📈 Momentum Indicators: Recovery From Oversold Conditions

The multi-component momentum oscillator shows a clear recovery from deeply negative conditions.

The main wave structure reached an oversold region during the decline toward $51.00–$52.00. It has since begun turning upward, while several faster components have accelerated toward the upper portion of the oscillator.

This improvement indicates that bearish momentum is decelerating.

The recovery is significant because it emerged while the price tested the 0.618 Fibonacci retracement. When an important support level coincides with oversold momentum, the probability of at least a temporary rebound increases.

However, the oscillator also presents a possible short-term risk. Some faster momentum components have already moved sharply higher while the price remains below resistance. This can create a situation in which momentum becomes stretched before the market has completed a structural breakout.

In other words, the oscillator is recovering faster than the price structure.

If HYPE remains below $57.54–$60.02 while the faster momentum lines begin turning downward, the market could generate another bearish momentum rotation.

The lower momentum indicator, which resembles a MACD configuration, provides a similarly mixed message.

The histogram has moved slightly positive, and the faster line appears to be attempting a bullish crossover. This is a constructive early signal.

Nevertheless, both principal lines remain below the zero level. A bullish crossover below zero often signals the beginning of a relief rally, but it does not automatically confirm a trend reversal.

For a stronger signal, the crossover would need to expand, the histogram would need to remain positive, and the indicator would eventually need to recover above the zero line.

At present, the momentum data can be summarised as follows:

The market is no longer in the most aggressive phase of bearish momentum. Buyers have generated a legitimate reaction from oversold conditions. However, momentum has improved before the price has reclaimed its structural resistance.

This creates a divergence between improving internal momentum and still-bearish external structure.

That divergence can resolve in 2 ways. Price can follow momentum upward and reclaim resistance, or momentum can fail beneath resistance and rotate lower again.

The next daily closes around $57.54 will provide an important indication of which outcome is becoming more likely.

🚀 Bullish Scenario: Recovery Above $57.54 and $60.02

Estimated probability: 30%

The bullish scenario requires HYPE to transform the current rebound into a confirmed structural recovery.

The first condition is a daily close above the $57.54–$57.91 resistance cluster. This would mean that the market has reclaimed the 0.5 Fibonacci retracement and the slower moving average.

A temporary intraday movement above the zone would not be enough. The close is important because the latest candle has already demonstrated that sellers are willing to defend this region.

After a breakout, the ideal bullish development would be a successful retest. HYPE could return toward $57.00–$57.50, defend the area as support and then continue toward $60.02.

The recovery of $60.02 would represent the second and more important condition.

This horizontal level has significant structural relevance and marks the beginning of a broader high-volume area. Acceptance above it would indicate that the market is beginning to absorb overhead supply.

The next target would then be the 0.382 Fibonacci retracement at $62.17.

A daily close above $62.17 would materially improve the chart because it would break the immediate sequence of lower highs and return the price inside the previous consolidation area.

If buyers maintain control above $62.17, the market could gradually extend toward $64.00–$65.00, followed by the major resistance at $67.89.

The $67.89 level represents the decisive bullish threshold on the chart.

A recovery above $67.89 would reclaim the 0.236 Fibonacci retracement, return HYPE to the principal volume area and invalidate a substantial portion of the current bearish structure.

Above that level, the probability of a return toward $70.00–$72.00 would increase. The final bullish objective would be a retest of the previous high near $77.14.

However, the bullish scenario would become progressively less credible if HYPE repeatedly tests $57.54 without closing above it.

Repeated failure at resistance can exhaust buyers and provide sellers with opportunities to re-enter the market.

Confirmation-based long framework

A conservative long scenario would require a daily close above $57.91, followed by evidence that the $57.00–$57.54 region has become support.

The first objective would be $60.02. The second objective would be $62.17. Additional objectives would be located near $64.00–$65.00 and $67.89.

A tighter structural invalidation could be placed below approximately $55.00, but such a level would be vulnerable to normal daily volatility.

A wider invalidation would be located below $52.92, because a return beneath the 0.618 Fibonacci level would invalidate the principal recovery thesis.

The appropriate invalidation depends on the entry structure, volatility and position size. A wider stop requires a smaller position to maintain constant portfolio risk.

An aggressive bullish entry before the recovery of $57.54 would offer a lower price but materially weaker confirmation. It would represent an attempt to anticipate the breakout rather than react to it.

Under the current chart structure, waiting for acceptance above resistance provides a more coherent risk framework.

📉 Bearish Scenario: Rejection and Breakdown Below $52.92

Estimated probability: 45%

The bearish scenario remains the most probable individual outcome because the broader daily structure continues to show lower highs, lower lows, a broken ascending trendline and price below the slower moving average.

The latest rejection near $57.20 may represent the first stage of this scenario.

If HYPE remains below $57.54–$57.91, the current rebound could lose momentum. A daily close below approximately $54.50–$55.00 would indicate that buyers are no longer defending the faster moving average effectively.

The next downside objective would then be $52.92.

A return to $52.92 would not immediately confirm a breakdown. The level previously attracted demand and may produce another reaction.

The bearish confirmation would occur through a decisive daily close below $52.92, particularly if accompanied by expanding volume and a weak subsequent retest.

In that case, the recent rebound would be interpreted as a lower high inside the broader corrective structure.

The first target below the Fibonacci support would be the local low zone between $50.50 and $51.50.

If this demand area also fails, the market could move toward the psychologically important $50.00 level. Below $50.00, the volume profile becomes thinner and downside movement could accelerate.

The principal bearish target would then be the 0.786 Fibonacci retracement at $46.33.

This level represents the final major Fibonacci support before a potential complete retracement toward the April base.

A reaction from $46.33 would be technically reasonable because deeper Fibonacci levels often attract longer-term participants. However, a daily breakdown below this area would substantially damage the broader structure.

Below $46.33, the next potential support region would be located around $42.00–$44.00, based on the previous expansion and consolidation visible on the left side of the chart.

The final macro downside reference would be $37.94.

A return to $37.94 is not the base case at present, but it would become technically plausible if HYPE loses $46.33 and the broader cryptocurrency market enters a stronger risk-off phase.

Confirmation-based short framework

A conservative bearish structure could emerge through a confirmed rejection between $57.54 and $60.02, followed by a daily close below $54.50.

The first objective would be $52.92. The second objective would be the $50.50–$51.50 region. The third objective would be $46.33.

An invalidation level for a rejection-based structure could be located above $60.02, because sustained acceptance above that level would weaken the immediate bearish thesis.

A second bearish framework would require a daily breakdown below $52.92, followed by a failed retest from underneath.

In this case, a structural invalidation could be located above approximately $54.00–$55.00, depending on the volatility displayed during the breakdown.

Entering directly at support before confirmation would expose the position to a strong rebound. Waiting for a close below support and a failed retest would reduce the risk of reacting to a temporary liquidity sweep.

The main risk to the bearish scenario is the improving momentum configuration. If the momentum crossover strengthens while HYPE reclaims $57.91, sellers could be forced to cover, accelerating the price toward $60.02–$62.17.

↔️ Neutral Scenario: Consolidation Between $52.92 and $60.02

Estimated probability: 25%

The third scenario is an extended consolidation between the 0.618 Fibonacci support and the major horizontal resistance.

Under this scenario, HYPE would remain trapped between approximately $52.92 and $60.02, allowing moving averages and momentum indicators to normalize.

This would be a logical market development after the strong decline from the July highs. The market may need time to absorb supply and determine whether the correction has reached equilibrium.

The midpoint of the range would be located near $56.00–$57.00, close to the current price.

Movements around the midpoint would provide limited directional information. The boundaries of the range would be more relevant.

Repeated defence of $52.92 would suggest accumulation or at least declining bearish conviction. Repeated rejection from $57.54–$60.02 would indicate that overhead supply remains dominant.

A prolonged range could also cause the slower moving average to flatten. This would reduce immediate bearish pressure but would not create a bullish trend until the upper boundary is reclaimed.

The risk of a range is that false breakouts can occur on both sides.

The market could briefly move above $57.91 or even $60.02, collect liquidity and then return inside the range. It could also trade below $52.92, trigger stops and recover immediately.

For this reason, daily closes and subsequent retests would be more reliable than intraday movements.

The neutral scenario would end with confirmed acceptance outside the $52.92–$60.02 range.

A breakout above the range would favour $62.17 and $67.89. A breakdown below the range would favour $50.00 and $46.33.

📌 Best Strategy: Wait for Confirmation

The current chart does not justify anticipating a complete directional reversal.

HYPE is positioned between a technically important support and a layered resistance structure. Momentum has improved, but price has not yet confirmed that improvement.

Buying directly below $57.54–$57.91 would mean entering beneath resistance while the broader daily trend remains corrective.

Selling directly above $52.92 would mean entering near major support after momentum has already reached oversold conditions.

Neither location provides an ideal confirmation-based structure.

The most coherent approach is therefore to wait for the market to reveal acceptance outside the current transition zone.

For bullish confirmation, the market should close above $57.91, reclaim $60.02, and ideally establish a higher low above the breakout area.

For bearish confirmation, HYPE should close below $52.92 and fail to recover the level during a subsequent retest.

Until one of those events occurs, the price remains in a technically ambiguous area.

Waiting does not eliminate risk, but it can reduce exposure to false directional signals. It also allows the invalidation level to be defined more logically.

The broader principle is that confirmation should come from price structure rather than from a single indicator.

Momentum indicators can turn before price. Fibonacci levels can generate temporary reactions. Moving averages can be crossed intraday and lost before the close. Volume clusters can slow price without reversing it.

The strongest signals occur when several factors align.

For a bullish case, that alignment would include a close above resistance, improving volume, a sustained positive momentum crossover and the formation of a higher low.

For a bearish case, it would include rejection from resistance, loss of support, expanding sell volume and renewed deterioration in momentum.

At present, that alignment is incomplete.

🧐 What to Watch in the Coming Days

The first variable to monitor is the behaviour of the price around the $55.00–$55.62 area.

This region includes the current price and the faster moving average. Holding it would preserve the immediate recovery attempt. Losing it would expose $52.92 again.

The second variable is the reaction at $57.54–$57.91.

A daily close above this zone would be the first tangible improvement in structure. Another rejection would reinforce its role as resistance.

The third variable is $60.02.

This is the level that separates a limited relief bounce from a more meaningful recovery. Until it is reclaimed, the upside remains structurally constrained.

The fourth variable is the momentum crossover.

The lower indicator is beginning to improve, but the lines remain below zero. Continued expansion of the positive histogram would support the rebound. A rapid return to negative histogram readings would warn that the recovery is losing force.

The fifth variable is volume.

A breakout with low volume would be less reliable than a breakout accompanied by expanding participation. Similarly, a breakdown below $52.92 with strong volume would carry greater significance than a temporary intraday movement beneath the level.

The sixth variable is the formation of a higher low.

Even after a breakout above $57.91, HYPE would need to prove that buyers can defend a pullback. A higher low above $55.00–$57.00 would provide stronger evidence that the market is transitioning away from the bearish sequence.

The final variable is the broader market environment.

HYPE remains a high-volatility crypto asset. Its technical structure can be influenced by changes in Bitcoin, general altcoin liquidity and market-wide risk appetite.

A broad crypto recovery would improve the probability of a breakout above $60.02. A renewed market-wide sell-off would increase the probability of a breakdown below $52.92.

🧭 Block2Learn Technical View

Our current view remains cautiously bearish, with recognition that a legitimate short-term rebound is developing.

The distinction between the short-term and medium-term structures is essential.

In the short term, HYPE has reacted positively from the $51.00–$52.92 demand area. Momentum is recovering, the bearish histogram has weakened and buyers have managed to return the price toward the faster moving average.

These are constructive developments.

In the medium term, however, HYPE remains below the 0.5 Fibonacci retracement, below the slower moving average, below the principal horizontal resistance and beneath the largest visible volume concentrations.

The market has also not invalidated the sequence of lower highs that began after the rejection from the upper part of the range.

For this reason, we do not currently classify the movement from $51.00 as a confirmed bullish reversal. It is better described as a technical recovery from oversold conditions.

The most probable individual scenario remains another period of pressure or consolidation beneath $57.54–$60.02.

This does not necessarily mean that HYPE must immediately return to the lows. The market could remain range-bound, build a base and gradually improve its structure.

However, the burden of proof remains on buyers.

A confirmed daily recovery above $60.02 would cause us to reassess the immediate bearish bias. A close above $62.17 would strengthen the recovery thesis. A move above $67.89 would represent a much more important structural invalidation of the correction.

On the downside, $52.92 remains the dividing line.

As long as the level holds, the market retains the possibility of constructing a bottom. Below it, the probability of a test of $50.00 and $46.33 would increase considerably.

Our probability distribution is therefore:

• Bearish continuation scenario: 45%
• Bullish recovery scenario: 30%
• Neutral consolidation scenario: 25%

These probabilities are not static. They should change as the market confirms or invalidates specific levels.

A daily close above $60.02 would increase the bullish probability. A close above $62.17 would improve it further.

A daily close below $52.92 would increase the bearish probability and weaken the neutral scenario.

Conclusion

Hyperliquid is attempting to stabilize after a deep correction from the $77.14 high, but the daily chart has not yet confirmed that the corrective phase is complete.

The rebound from the $51.00–$52.92 area is technically valid. Momentum indicators are recovering from oversold conditions, the bearish impulse has slowed and the lower momentum histogram is beginning to turn positive.

Nevertheless, HYPE remains beneath a dense resistance structure.

The first barrier is located between $57.54 and $57.91, where the 0.5 Fibonacci retracement and the slower moving average converge. The next barrier is $60.02, followed by $62.17.

Until these levels are reclaimed, the recovery should be treated as a relief movement inside the broader bearish daily structure.

The bullish case requires acceptance above $57.91, followed by a recovery of $60.02 and $62.17. Such a development would open the way toward $67.89 and potentially the $70.00–$72.00 region.

The bearish case requires another rejection from the current resistance cluster and a confirmed breakdown below $52.92. That would expose $50.00–$51.00, followed by the deeper Fibonacci support at $46.33.

Between those thresholds, HYPE may continue consolidating while the market absorbs the recent volatility.

The current technical structure therefore favours patience. Momentum is improving, but price confirmation remains absent. The next decisive signal is likely to come from the market’s ability either to reclaim $57.54–$60.02 or to lose $52.92.

Until then, Hyperliquid remains in a transition phase: no longer under maximum bearish momentum, but not yet strong enough to confirm a sustainable bullish reversal.

Source of the Chart: TradingView

📜 Disclaimer

This analysis is provided exclusively for educational and informational purposes. It does not constitute financial advice, investment advice, trading advice or a recommendation to buy or sell any financial instrument. Cryptocurrency markets are highly volatile and involve substantial risk of loss. Every investor should conduct independent research, evaluate personal risk tolerance and consult a qualified financial professional before making investment decisions.