Date: Tue, July 08, 2025 | 07:36 AM GMTAs Q3 kicks into gear, the crypto market faces renewed turbulence following the U.S. President Trump’s announcement of fresh tariffs, which has rattled market sentiment. Bitcoin (BTC) and Ethereum (ETH) are both down over 0.5% today, and altcoins are showing signs of technical stress — with Hyperliquid (HYPE) being one of the latest to flash warning signs.$HYPE has declined by over 5% in the past 24 hours, and technical signals suggest a short-term bearish shift may now be underway.
Source: Coinmarketcap
Rising Wedge Breakdown — Early Falling Wedge in Play?
On the 4-hour chart, HYPE had been steadily climbing inside a rising wedge — a well-known bearish reversal pattern — through late June and early July. Price action respected the upward-sloping support and resistance boundaries of this structure, forming higher lows and higher highs.
However today, HYPE faced sharp rejection near the $39.60 resistance level and has now broken below the rising wedge support, triggering a bearish breakdown.
Hyperliquid (HYPE) 4H Chart/Coinsprobe (Source: Tradingview)
Interestingly, an early formation of a falling wedge — typically a bullish reversal pattern — is now emerging within the larger downtrend. If validated, this structure could become the next focus for bears until the pattern completion.
What’s Next for HYPE?
HYPE is now testing a key support zone around $37.89, which also aligns with the 100-period moving average on the 4-hour timeframe. This is a critical level — a bounce from here could lead to a retest of the broken wedge support (now turned resistance), with the price potentially climbing back toward $40.44. A successful rebound would reduce the likelihood of a larger falling wedge formation.
However, if HYPE breaks and closes below the $36.87 support, it would likely confirm the bearish breakdown and increase the probability of a continued move lower within a developing falling wedge. In that scenario, the next downside targets may emerge near $35.48 and $33.38, which have previously acted as strong support zones.
The current week will be crucial in determining whether this wedge breakdown leads to a full trend reversal — or a short-lived shakeout.
Disclaimer: This article is for informational purposes only and reflects the writer’s personal views. It should not be considered financial advice. Always conduct your own research before investing in cryptocurrencies.
