HYPE fails to hold $42.24 resistance after rejection, signaling risk of deeper correction
Volume drops 34% as HYPE trades at $38.48, testing key support zone near $36.50
Descending channel breakdown puts $30–$32 price target in play for HYPE/USDT
Hyperliquid (HYPE) is trading around $38.48 after a failed breakout attempt above the $42.24 resistance level. The asset is currently hovering near a local support zone, with market volume showing a sharp decline.
Price Action Indicates Mixed Sentiment
The (HYPE/USDT) pair had a brief rally in the middle of the month, going as high as almost 50 dollars out of a low of 34 dollars before it returned. This rally went into a descending channel structure after which it broke down below the lower trendline at around 40. Since that happened, the price action has been nonexistent with a slight recovery to the levels of $38.50.
Wider opinion CoinMarketCap displays 66 percent of the voting leaning bullish and 34 percent of the opinion remaining bearish. However, with the optimism, the current volume of trade has decreased by more than 34%, which is a sign of low trade. The price still checks the major support area of around 36.00 to 36.50.
Technical Structure Suggests Caution
On the 4-hour chart, HYPE is retesting the underside of a previously broken support line. This line had served as the lower boundary of a descending channel formed in mid-July. If the price fails to reclaim the $40.00 mark, the bearish structure may persist.
Measured move pattern forecasts a possible slide spot of about 30.00 to 32.00 in case the sellers take charge. On the other hand, the reaffirmation of buying above the price of $42.24 can restore positive dynamics. The second level of resistance is between 45.00 and 48.00, which was last hit during the July peak.
Volume and Market Structure Signal Pause
According to CoinMarketCap, Hyperliquid holds a market cap of $12.85 billion with 333.92 million HYPE in circulation. The fully diluted valuation stands at $38.48 billion, matching the current token price. The profile score remains neutral at 52%, aligning with the current market behavior.
In a tweet, @Adex_crypt indicated that the token is not holding on to $42.24 and hinted that a movement was underway to countercheck. Until the price is above this level, it could be considered that traders can expect that the consolidation or even downside pressure will continue.
