Hyperliquid Stumbles: Why the HYPE Price Could Keep Falling in 2025

• Is HYPE Forming a Bearish Rounding Top?
• Why the 4-Hour Chart Tells a Different Story
• Liquidity Crunch: What’s Next for Traders?
• FAQs: Your Burning Questions Answered

The HYPE token is showing classic bearish signals, with a rounding top pattern forming on the daily chart. A break below the green support line could accelerate the downtrend, especially as bitcoin shows structural instability. While short-term liquidity has been exhausted, reducing the risk of an immediate crash, the overall market remains fragile. The 4-hour chart reveals dynamic resistance suppressing recovery attempts, though a short-term technical bounce is possible due to excessive short positioning. Until the EMA 200 is reclaimed, the trend remains bearish. This article dives deep into the charts, liquidity dynamics, and what traders should watch next.

Is HYPE Forming a Bearish Rounding Top?

On the daily chart, HYPE is painting a textbook rounding top—a pattern that often precedes extended downtrends. The green support line is critical; a breakdown here WOULD trigger fresh sell orders and likely push the price toward the October 10th Wick structure. Bitcoin’s wobbling isn’t helping either. While the heatmap suggests short-term selling pressure is exhausted, don’t mistake this for strength. The market’s as stable as a house of cards in a windstorm right now. Historical data from TradingView shows similar patterns in 2023 led to 20-30% drops. Could history repeat? Maybe. But remember, past performance isn’t a crystal ball.

Why the 4-Hour Chart Tells a Different Story

Zooming into the 4-hour timeframe, things get spicy. The price keeps getting rejected at the red resistance zone, and the EMA 200 is playing bouncer—blocking every recovery attempt. But here’s the twist: the MACD is flirting with the zero line, hinting at a potential short-term bounce. Why? Because all the weak longs have been liquidated, leaving a pile of shorts that could fuel a squeeze. It’s like a coiled spring; if BTC stops bleeding, HYPE might snap back 5-8% just to liquidate overeager bears. Still, without conquering the EMA 200, it’s just noise, not a trend change.

Liquidity Crunch: What’s Next for Traders?

Below the current price lies a high-volume zone that could act as support. But let’s be real—if Bitcoin tanks again, that “support” might vanish faster than a meme coin’s hype. The BTCC research team notes that HYPE’s open interest is skewed 70% short, which is… interesting. In my experience, such extremes often precede violent reversals. But timing them? That’s the million-dollar question. One thing’s clear: until macro uncertainty (looking at you, Fed meetings) settles, expect more chop. Pro tip: Watch BTC’s weekly close—it’ll set the tone.

FAQs: Your Burning Questions Answered

What’s the key level to watch for HYPE?

The green support on the daily chart. A close below it opens the door to a 15-20% drop toward the October lows.

Could HYPE rebound soon?

Yes, but only as a technical bounce. The EMA 200 on the 4-hour chart must break to signal anything sustainable.

How does Bitcoin affect HYPE?

Like most alts, HYPE dances to BTC’s tune. If Bitcoin stabilizes, HYPE could squeeze shorts. If not, expect pain.