HYPE Risks 22% Correction Below $76 Support
Hyperliquid’s HYPE token is facing rising near-term correction risk after failing to extend its rally. Following a move to about $97 on 29 October—after ICE announced a partnership with Hyperliquid to launch a regulated US perpetual futures market—HYPE fell 14.19% over six days. It had previously gained nearly 10% in a week despite a broader market pullback, but was later trading below its recent high near $98.
Analyst Ali Martinez says a potential head-and-shoulders pattern could point to a roughly 22% correction if HYPE closes a 12-hour session below the $76–$78 neckline. That break could open the way to targets around $62 and $59; another analyst has also identified $76–$77 as key support. Trading data points to a liquidity pocket near $74, while six consecutive days of positive exchange netflows in CoinGlass data suggest more HYPE may be moving onto exchanges and becoming available for sale. A recovery above about $90 would weaken the bearish setup, and the pattern is not confirmed unless support breaks.
For traders, the signals raise downside risk in the short term, but do not yet confirm a lasting trend reversal. HYPE’s broader weekly trend may remain bullish, leaving room for a retracement rather than a deeper reversal. Bitwise CIO Matt Hougan noted that in 2026 the median return among the top 20 crypto assets was -15%, versus an average gain of 14%, with HYPE, NEAR and ZEC among the stronger performers.
Bearish
The near-term HYPE outlook is bearish because price has pulled back from the $97–$98 area, failed to make a new high, and faces a clearly watched $76–$78 support zone. A confirmed 12-hour close below that range could trigger stop-losses and technical selling, with the cited chart targets at $62 and $59. Positive exchange netflows and the liquidity pocket near $74 add to the risk that available supply could meet weaker demand and accelerate a decline.
However, the bearish case remains conditional. Support has not been confirmed as broken, and a recovery above roughly $90 would weaken the head-and-shoulders setup. The broader weekly trend may still be bullish, so a drop could develop as a correction within that trend rather than a long-term reversal. Traders may therefore watch the neckline, exchange flows and price reaction near $74 closely; a decisive break would strengthen downside risk, while a sustained rebound would reduce it.