Hyperliquid (HYPE) price in trouble? Flag pattern signals drop to $19

Hyperliquid (HYPE) forms a bear flag near $25; Analysts warn of a possible decline to $19-$17 amid weak momentum and bearish structure.

The bear flag pattern indicates further decline

Crypto analyst Ali Martinez shared a 12-hour chart showing what appears to be a bear flag formation. This pattern usually follows a sharp decline and is characterized by a short upward channel before a possible continuation downwards. The assets are holding within this channel, just below the key resistance level at $27.

Hyperfluid $HYPE forms a flag that could result in a move towards $19. pic.twitter.com/ujBDmvzrWz

— Ali Charts (@alicharts) January 8, 2026

A confirmed break below the flag lower limit would support a move towards the $19 zone. This target is based on the expected movement from the previous decline.

Moreover, according to market observer Hyper_Up, the broader trend remains bearish. They stated: “In the worst case, the price could drop to the $17 area.They also pointed to internal liquidity near $24 that could slow the decline, before adding:

“No strong turnaround should be expected from there.”

Meanwhile, the liquidity area around $28 was recently cleared, triggering another decline. This break confirmed that sellers remain in control and that a turnaround is unlikely without a return to broader market strength.

Indicators show selling pressure

On the 1-hour chart, momentum remains negative. The 9-period EMA is below the 21-period EMA and the price is trading below both. For buyers to regain control, HYPE should move back above the $27 zone.

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The MACD also remains in bearish territory. The MACD line is below the signal line and the histogram shows persistent negative pressure. There are early signs of slowing momentum, but no crossover has yet formed.

Separately, Grayscale does submitted statutory trusts for both BNB and HYPE with the Delaware Division of Corporations. This is a required step before the company can apply for ETFs with US regulators.