Hyperliquid (HYPE): Is the Token Finally Stabilizing in 2025?

• What Does HYPE's Daily Chart Reveal About Its Current Trend?
• How Does the 4-Hour Chart Differ in Its Technical Signals?
• What Role Does Bitcoin Play in HYPE's Potential Recovery?
• What Are the Key Technical Indicators Signaling?
• What Trading Strategies Could Work in This Environment?
• How Does HYPE Compare to Other Altcoins in Similar Situations?
• What Are the Potential Scenarios Moving Forward?
• What's the Bottom Line for Traders Considering HYPE?
• Frequently Asked Questions

Hyperliquid (HYPE) is at a critical technical juncture as we approach the end of 2025. The token shows signs of potential stabilization after a significant correction, supported by strong historical volume and exhausted downward liquidity. However, its fate remains tied to Bitcoin's broader market movements. This analysis dives DEEP into HYPE's current technical setup across timeframes, examining key indicators like RSI, MACD, and liquidation heatmaps while considering Bitcoin's overarching influence on altcoin markets.

What Does HYPE's Daily Chart Reveal About Its Current Trend?

The daily chart presents a classic rollover scenario for Hyperliquid. After forming a prominent top, HYPE retraced sharply into what technical analysts call the "green support zone" - an area with substantial historical trading volume that's now acting as a demand base. The Relative Strength Index (RSI) sits deep in oversold territory at 28.4, suggesting selling exhaustion though not yet flashing definitive bullish signals. Liquidation heatmaps from TradingView indicate most downward liquidity has been cleared, with remaining liquidations clustered above current prices - a setup that could fuel short-covering rallies if buying pressure emerges.

From my experience tracking altcoin recoveries, this combination of oversold conditions, strong support, and favorable liquidation positioning often precedes stabilization phases. However, as the BTCC research team noted in their December 2025 market outlook, "No altcoin can decouple completely from Bitcoin's gravitational pull." HYPE's ability to hold this support ultimately depends on whether BTC can stabilize above its crucial $90,000 psychological level.

How Does the 4-Hour Chart Differ in Its Technical Signals?

Zooming into the 4-hour timeframe reveals more nuanced momentum characteristics. While the RSI remains oversold at 31.7, it's showing early signs of basing. The MACD histogram is flattening NEAR the zero line, suggesting weakening downward momentum that could soon transition bullish. What's particularly interesting is the order flow imbalance - there's a clear short delta in the current price range with substantial liquidity pools waiting above, creating potential fuel for a short squeeze.

The immediate technical hurdles are well-defined:

• EMA 50 at $2.45 (CoinMarketCap data)
• EMA 200 at $2.78

In my trading journal, I've marked these as key inflection points - until HYPE can reclaim these moving averages, any bounce remains suspect. The token needs to demonstrate follow-through buying rather than just relying on oversold conditions.

What Role Does Bitcoin Play in HYPE's Potential Recovery?

Bitcoin's influence here can't be overstated. The correlation coefficient between HYPE and BTC stands at 0.82 over the past 30 days (TradingView data), meaning they move in near-lockstep. Currently, bitcoin itself is testing a make-or-break level at $90,000 - a psychological round number that's become this cycle's battleground between bulls and bears.

Historical data from CoinMarketCap shows that when BTC stabilizes after corrections, altcoins like HYPE typically experience amplified rebounds. However, if Bitcoin breaks down further, even HYPE's strong technical support may not hold. This interdependency creates a tricky situation for traders - you're essentially making two bets: one on HYPE's technicals and another on Bitcoin's broader trend.

What Are the Key Technical Indicators Signaling?

The technical picture presents mixed but potentially promising signals:

Indicator	Status	Implication
RSI (Daily)	28.4 (Oversold)	Selling exhaustion but no reversal confirmation
MACD (4H)	Histogram flattening	Momentum shift possible
Liquidation Heatmap	Cleared below, clustered above	Reduced downward pressure potential
Volume Profile	Strong at current levels	Supportive demand zone

The most encouraging development is the liquidation profile. Having worked through most downward liquidations means fewer forced sellers remain - it's like the market has already taken its medicine. Now we're waiting to see if patients (buyers) return to the ward.

What Trading Strategies Could Work in This Environment?

Given this setup, several approaches emerge:

1. Conservative: Wait for daily RSI to cross above 30 and price to reclaim EMA50 before considering longs
2. Moderate: Scale into positions at current levels with stops below recent swing low
3. Aggressive: Fade extreme oversold conditions anticipating short squeeze

Personally, I'm leaning toward the moderate approach while keeping position sizes small. The old trading adage "the trend is your friend until it bends" applies here - until we see concrete evidence of a bend, caution remains prudent. That said, the risk/reward at these levels is becoming interesting for swing traders.

How Does HYPE Compare to Other Altcoins in Similar Situations?

Looking across the altcoin landscape, HYPE isn't alone in this technical predicament. Many mid-cap tokens have retraced to historically significant support zones while showing oversold conditions. However, HYPE stands out for two reasons:

• Its liquidation profile is cleaner than most - fewer "liquidation bombs" lurk beneath current prices
• The volume at support is exceptionally high, suggesting stronger conviction from buyers

Data from BTCC's altcoin dashboard shows HYPE's support zone has 47% more historical volume than the sector average, giving it relatively stronger footing. Still, in crypto, nothing's guaranteed - remember Terra Luna's "strong support" before it collapsed?

What Are the Potential Scenarios Moving Forward?

We're essentially looking at three possible paths:

1. Bullish Resolution: Bitcoin stabilizes, HYPE holds support and begins grinding higher, first targeting $2.45 then $2.78
2. Sideways Consolidation: Prices chop between current levels and EMA50 as market digests recent moves
3. Bearish Breakdown: Bitcoin weakness drags HYPE through support, triggering stops and new downtrend

The probability skew appears slightly favorable for scenario 1 or 2 based on the technical setup, but crypto markets have humbled many analysts (myself included) who got too confident in their predictions. This is why risk management remains paramount.

What's the Bottom Line for Traders Considering HYPE?

Hyperliquid presents one of the more interesting technical setups we've seen in altcoins this quarter. The combination of oversold conditions, strong historical support, and favorable liquidation positioning suggests the worst selling may be over. However, the token remains at the mercy of Bitcoin's next MOVE and needs to prove it can convert technical potential into actual price appreciation.

For those considering positions, patience and defined risk parameters will be key. As I often tell my trading community: "It's better to miss the first 10% of a move than to catch the full 100% of a false breakout." HYPE deserves watchlist status, but confirmation is still required before declaring the correction over.

This article does not constitute investment advice.

Frequently Asked Questions

What is Hyperliquid (HYPE)?

Hyperliquid is a cryptocurrency token that has shown significant volatility in 2025, currently testing key technical support levels after a substantial correction from its yearly highs.

Why is HYPE considered oversold?

The Relative Strength Index (RSI) on both daily and 4-hour charts shows readings below 30, which technical analysts traditionally consider oversold territory indicating potential exhaustion of selling pressure.

How does Bitcoin affect HYPE's price?

Bitcoin and HYPE have shown an 0.82 correlation coefficient over the past month, meaning HYPE's price movements are heavily influenced by Bitcoin's broader market trends and sentiment.

What are the key price levels to watch for HYPE?

Traders are closely monitoring the $2.45 level (EMA 50) and $2.78 (EMA 200) as potential resistance points, with current support holding around $2.15 based on historical volume profiles.

What trading strategies might work for HYPE currently?

Strategies range from conservative (waiting for confirmation above key moving averages) to aggressive (fading oversold conditions), with most professional traders recommending smaller position sizes given the uncertain market environment.