Hyperliquid (HYPE) faces important test: decline to $25 ahead?

HYPE tests $36 resistance after recovery; Traders are looking for a breakout towards $50 or a decline towards $25 as key levels come into view.

Meanwhile, this rebound comes as the market tests a key level that could determine HYPE’s next move.

Retesting breakdown zone after bearish pattern

HYPE is currently testing the $36 level, which served as the neckline of a head-and-shoulders pattern that developed in recent months. The setup formed with an initial peak in August, a higher high in September, and a lower high in November, signaling a possible trend reversal.

After breaking below the neckline, the price has returned to this level. Current trading activity suggests that this area is acting as resistance. If this is not recovered, the downward trend may be maintained. Chart projections show possible support levels around $30, $27 and $25. Analyst Ali Martinez declared,

“Hyperliquid $HYPE retests the crisis zone ahead of a possible move towards $25.”

At the same time, HYPE has risen from the lower Bollinger Band towards $30 and is moving towards the 20-day moving average of $37. This level remains an important test. A break above could open the way to $43, while a rejection could send the price back to $31.

The MACD is showing early signs of a reversal in momentum. The MACD line has shifted slightly above the signal line and the histogram shifts to positive. However, both lines are still below zero, indicating that the overall trend is not yet strong. For now, this points to near-term recovery potential, but no confirmed trend reversal.

Bullish scenario: a recovery path to $50?

Analyst Make Sense shared a more optimistic view, noting that HYPE has shown early strength after a long period of weakness. They wrote,

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“$HYPE just saw its first solid recovery after a month of pressure.”

According to their breakdown, regaining the $37-$38 area could lead to further upward pressure. The next target zone is at $41-$42, followed by a momentum shift around $44. If HYPE breaches that level, the next upside range will be between $48 and $50, areas said to contain untested liquidity.

Price action near the $36-$38 zone remains critical. A strong move to the upside could support further recovery, while a rejection could keep $25 on edge.