Will there be a 50% plunge for Hyperliquid’s HYPE? The bear case explained

A painful downturn or a renewed rally: what’s next for HYPE?

Since that peak, however, the valuation has fallen significantly, and one popular analyst thinks the downturn may have only just begun.

Big crash on the horizon?

Popular X user, Ali Martinez, analyzed HYPE’s price performance and argued that the chart could form a classic head and shoulders pattern. He said a drop to $36 will confirm this scenario, which in turn could lead to a collapse to $20.

Hyperfluid $HYPE could form a head and shoulders pattern. If confirmed, it expects a move towards $20. pic.twitter.com/3lKhj8ppqt

— Ali (@ali_charts) November 3, 2025

At the time of writing, HYPE is trading at around $41, meaning such a drop would represent a 50% decline. Another reputable market observer who is quite bearish on this asset is Altcoin Sherpa. The X user told their 250,000+ followers said HYPE’s performance seems “poor” and revealed they are downgrading their position after seeing the latest downtrend.

“It seems like a bullshit, slow, efficient sale. I’m not sure what’s going on but I’m just waiting for more clarity,” they stated on the social media platform.

The bullish predictions

Numerous other analysts see the current price level as an ideal buying opportunity. X user Ahmed said they will start collecting HYPE tokens again, while Crypto Tony promised to do the same if the price drops to $38.40.

Corgil is also optimistic, to claim that the cryptocurrency is just “one announcement away” from hitting a new all-time high before the major tokens unlock in November. Many industry participants have warned which will release hundreds of millions of dollars worth of HYPE by the end of the month, which could increase supply and have a negative impact on the price.

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“Anyone with an inch of a brain knows that the Hyperliquid team will relock or come up with something else that would challenge the ‘typical’ crypto project playbook,” Corgil surmised.

Meanwhile, there is a mysterious crypto trader who usually bets serious amounts and recently has a 100% win rate opened a 10x long position on HYPE, leading to speculation that they may know something we don’t.