Hyperliquid at a Tipping Point: Will HYPE Soar or Implode?

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Momentum around Hyperliquid has cooled, like a winter wind through a labor camp’s corridor, after HYPE failed to hold a breakout above $31. The token now sits at the familiar crossing where buyers and sellers spit out their numbers and drift away. Price hovers near stubborn support, and the crowd-half gambler, half clerk-waits for a signal that could define the next turn in this little theatre of figures.

The recent retreat is not an accident but a symptom. A long, grinding consolidation that has defined price action for months. Shifting market sentiment, slackening technical momentum, and a quiet, almost dutiful cooling of network activity reshape short-term expectations. The charts scribble a dull chorus: nothing moves, and when something does, it moves with the gravity of a state inspection.

Data tracked across major market platforms shows HYPE trudging within a well-worn corridor, roughly $28 to $30. The structure offers predictable trading levels, yet the repeated refusals near resistance reveal buyers growing cautious after their last ascent-a stubborn bunch, as if they fear the arithmetic of loss more than the lure of gain.

Range Trading Defines the Current Market

Hyperliquid (HYPE) briefly rose above $31 earlier this week before retreating, sealing a zone of resistance between $32 and $35. Analysts note that the $27.50-$28.50 region remains the most important support area, where buyers have consistently stepped in during recent volatility-a reminder that courage, like thrift, is often found near the ledger line.

Holding above roughly $28.98 is seen as essential for maintaining any bullish continuation. A successful defense could allow another test toward $32.28 and potentially $35 if momentum returns with the same old insistence it never actually learned from history.

But failure to hold this zone may reveal a deeper downside, with projections pointing toward $25-$26 as the next support band. The consolidation comes after the token declined nearly 25% from its yearly high near $37.8, a reflection of broader crypto market weakness and the pall that sits over risk appetite across digital assets.

Bearish Signals Emerge as Hyperliquid’s  Activity Slows

Technical indicators offer a chorus of mixed notes. A bearish MACD crossover and waning momentum readings suggest selling pressure has grown, while neutral RSI levels indicate the market has not yet sunk to oversold conditions-not that oversold ever tastes like victory in these halls.

Fundamentals have also softened. Weekly protocol revenue recently dropped more than 50%, alongside a decline in total value locked. Lower activity reduces the platform’s capacity to fund token buybacks, easing deflationary pressure that previously supported price recovery. It’s a reminder that numbers, like men, bend to circumstance and not to wishful thinking.

Despite this, market participants continue to monitor institutional developments around Hyperliquid, including expanding liquidity access through integrations and growing participation from larger traders. Sometimes the crowd claps for progress, sometimes it just pretends to understand the equations.

Can HYPE Reclaim Momentum?

Short-term direction now depends largely on whether support near $28 holds. A bounce from this region could trigger renewed buying interest and reopen the path toward $34-$35. Conversely, a confirmed breakdown may accelerate losses if broader crypto market conditions remain weak-the sort of reality check that makes even confident charts look away in embarrassment.

Declining volume and cautious sentiment suggest traders are waiting for clearer confirmation. Price action near current levels is increasingly viewed as a decision zone, one that may determine whether HYPE resumes its upward trend or enters a deeper corrective phase, like a verdict handed down at the end of a long, tedious quarter.

Cover image from ChatGPT, HYPEUSD chart on Tradingview

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2026-02-19 11:22