Hyperliquid is starting to attract serious attention again as technicals and fundamentals begin to line up. Market watchers now believe the token could be setting up for a major breakout, especially with fresh signs of compression and valuation gaps.

Hyperliquid Undervalued? McKenna Thinks It Should Be Trading at $77

In a recent post, McKenna pointed out that if Hyperliquid were to trade at the same SWPE (smart revenue-to-price ratio) as its previous top, it’d be sitting near $77, not where it is now. That call is based on Hyperliquid’s current $3.2M 30-day EMA revenue, and the numbers aren’t pulled from thin air. The visual from Hyperliquid’s dashboard shows the SWPE ratio sitting at 3.62, well below historical peaks, despite rising protocol revenue.

Hyperliquid’s SWPE ratio sits well below historical highs, signaling a potential mispricing despite rising revenue. Source: McKenna via X

This kind of mismatch between revenue and token price often doesn’t last forever. As more eyes catch onto the data, especially in a market starved for clear value signals, HYPE could start to close that gap.

Hyperliquid Bull Flag Suggests Breakout Imminent

Coming off the back of a strong revenue-based valuation, Hyperliquid now looks like it’s gearing up for a move, technically too. The latest chart shared by Munch shows the price consolidating within a textbook bull flag.

HYPE’s price consolidates within a clean bull flag pattern, hinting at a potential breakout if momentum holds. Source: Munch via X

That’s typically the kind of structure that resolves upward, especially when paired with rising fundamentals. Price is also wedged right between the 43.3 and 45.4 SMAs, showing compression that often leads to volatility.

If HYPE breaks out above the upper trendline, currently around $4, that would validate the flag pattern and potentially ignite a measured move towards the previous highs in the $50 to 52 zone. Given the recent data showing it’s undervalued relative to revenue, any breakout here could get extra attention. Nothing confirmed yet, but the setup is clean, and it’s one of those moments where technicals and fundamentals are finally starting to align.

HYPE Price Structure Hints at Reversal with Bullish Divergence in Play

Fresh from recent discussions around valuation gaps and flag breakouts, this new chart by x256xx adds more weight to the idea that HYPE may be entering a critical turning point. The RSI on the 4H is showing a clean bullish divergence between price and RSI.

Hyperliquid shows bullish divergence on the 4H RSI. Source: x256xx via X

This is often one of the earliest signs that bearish momentum is exhausting. Meanwhile, the price action has tapped into the lower demand band between $34.4 and $35.2, a previously defended zone that could now offer a base for a short-term bounce.

Contrary View: Hyperliquid Fractal Drawdown Echoes LUNA, But Fundamentals Tell a Different Story

The chart from MetamateDaz draws a dramatic comparison between Hyperliquid and LUNA’s infamous blow-off top and crash sequence, suggesting HYPE is 99% through the same pattern with one final leg down remaining. Visually, the fractal alignment is striking. Both assets display similar parabolic rises, distribution zones, and now a potential breakdown area marked in red.

HYPE’s current structure mirrors LUNA’s historic breakdown, but strong fundamentals challenge the bearish fractal narrative. Source: MetamateDaz via X

However, the contrary view lies in the fundamentals. Unlike LUNA’s collapse, which stemmed from a systemic flaw, HYPE continues to post strong on-chain revenue, growing user metrics, and improving valuation ratios. As covered in earlier sections, McKenna’s analysis shows Hyperliquid’s SWPE is still undervalued relative to its historical norms, and bullish divergence has started to appear on the 4H RSI. If anything, this could be one of those rare moments where technical overlays clash with a fundamentally maturing project, and the outcome might not follow the script the fractal suggests.

Final Thoughts: Bullish Scenario or Bearish Outlook?

While some are drawing scary comparisons between Hyperliquid and LUNA’s downfall, the deeper story feels different. The fundamentals just don’t match the doom narrative. HYPE isn’t collapsing under broken tokenomics, it’s tightening supply, pulling in real revenue, and showing early signs of reversal on key indicators like RSI. The bullish divergence on the 4H chart and that textbook bull flag setup are hard to ignore.

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Filed under: Bitcoin - @ July 26, 2025 7:18 pm