At the time of writing, Hyperliquid finds itself at a crucial turning point. Despite consistent network growth and rising fee revenue, the token’s price continues to slide, leaving participants divided between opportunity and caution.

On-Chain View Highlights Undervaluation

On-chain metrics indicate that Hyperliquid (HYPE) may be trading below its fair value. McKenna’s supply-weighted P/E ratio chart shows that, based on the last 30 days of revenue, HYPE is more undervalued at $39 than it was at $13. Revenue momentum has been steadily rising, now exceeding $3.6M monthly, suggesting that the ecosystem’s fee generation remains healthy despite price retracements.

Hyperliquid’s on-chain data reveals rising revenue despite falling prices, hinting at potential undervaluation in the current market. Source: McKenna via X

This mismatch between price and revenue performance reflects how short-term volatility may be masking deeper fundamental strength. Historically, such divergences have preceded strong recoveries once market sentiment aligns with on-chain growth, positioning HYPE as potentially undervalued relative to its revenue trajectory.

Weak Structure Persists Despite On-Chain Strength

While fundamentals suggest undervaluation, technical charts remain less encouraging. Trader Tim’s setup captures a clear downtrend where HYPE continues to post lower highs and lower lows. The price currently hovers around $39, facing strong resistance between $41 and $49, while support zones lie near $36 and $31.

Hyperliquid’s technical chart continues to show a clear downtrend. Source: Trader Tim via X

A decisive breakout above $49 would be required to flip the market structure bullish again. Until that happens, the chart continues to lean bearish even as on-chain data signals value beneath the surface. This divergence between technical and fundamental perspectives highlights a cautious environment where participants await for confirmation.

Market Continues to Correct as Momentum Weakens

HYPE’s broader chart structure continues to show correction patterns in line with the broader DEX sector. The visual formation suggests that the token remains within a downward leg, with the next key zone of demand projected around the $22 to $25 range. Price is currently attempting to stabilize, but momentum remains weak, reinforcing the view that short-term relief rallies are likely to be sold into.

Hyperliquid’s momentum weakens as price trends towards key support near $25. Source: Trader Koala via X

Should price revisit the highlighted support area, it may offer an opportunity for a base formation before any meaningful recovery attempt. The near-term outlook remains corrective, with the market emphasizing defensive positioning as participants assess whether liquidity absorption near $25 triggers renewed accumulation.

Hyperliquid Post-Dip Recovery Setup Points Towards $50

Nehal’s technical outlook frames the ongoing decline as part of a larger accumulation cycle. The Hyperliquid chart shows that HYPE could revisit its support zone near $30 before rebounding towards the mid-range levels between $45 and $50. This recovery projection aligns with volume profile data showing dense liquidity clusters near those upper bands, making them natural retracement targets once the dip stabilizes.

Hyperliquid’s chart hints at a potential rebound towards $50 if support near $30 holds firm. Source: Nehal via X

The overall setup suggests that the Hyperliquid’s corrective phase could precede a broader structural reset. If the lower range holds firm, the probability of a rebound towards $50 increases significantly, marking that zone as the first meaningful recovery checkpoint after the current decline.

Final Thoughts: Hyperliquid’s Next Move?

Hyperliquid remains at a decisive point where its on-chain strength contrasts sharply with short-term technical weakness. The $30 to $32 range now acts as a key defense line, while resistance near $45 to $50 remains the barrier to reclaiming momentum. Despite the ongoing corrective phase, consistent revenue growth and stable network activity keep the medium-term structure constructive rather than broken.

Key technical and structural takeaways:

Support levels: $30–$32 primary range, with liquidity pools near $25.
Resistance levels: $45–$50 mark acts as the first recovery checkpoint.
Consolidation remains healthy if the price stays above $30 with volume absorption.

If buyers can maintain pressure above the mid-range, the market could shift back towards expansion phases into late Q4. The broader picture still favors gradual recovery once short-term exhaustion plays out, keeping Hyperliquid’s next leg upward a realistic scenario for patient traders.

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Filed under: Bitcoin - @ October 16, 2025 9:00 pm