Hyperliquid has been testing the psychological $50 level for the past few weeks, but despite several attempts, no clear breakthrough has been achieved. The HYPE token continues to hover just below this resistance, with sellers stepping in each time buyers push higher.

Hyperliquid Struggling Off the $50 Resistance

Hyperliquid continues to test the patience as it stalls just under the $50 resistance band. The price action has been steady, but this level has proven sticky, with sellers stepping in each time buyers attempt to push higher.

On the chart shared by ER404i, this region forms a supply zone where volume tends to thin out, making it a key battleground. For now, HYPE Hyperliquid price remains rangebound, and the longer it sits here without a breakout, the greater the risk of a rejection back towards support.

Hyperliquid holds steady below the $50 mark, with $44–$45 acting as a crucial defense zone for buyers. Source: ER404i via X

Technically, the $44 to $45 range has become the immediate defense zone, while a clean breakout above $50 would confirm bullish continuation. Until then, the market is caught in a delicate balance. RSI is hovering around neutral levels, suggesting neither side has full control yet.

If momentum builds above $50, upside targets could stretch toward $55 to $60, but failure to hold support may drag price back to $40.

Hyperliquid Developing an Inverse Head and Shoulders

HYPE is shaping up into a possible inverse head and shoulders pattern, with the right shoulder developing just under the $50 resistance zone. This formation is often seen as a bullish reversal structure, hinting that buyers may be quietly regaining control after weeks of sideways pressure. The neckline sits around $50, making it the key breakout level. For now, HYPE is hovering in the $44 to $45 range, where buyers have consistently defended support.

HYPE forms a potential inverse head and shoulders, with the $50 neckline standing as the key breakout level. Source: BigCheds via X

The Bollinger Bands are tightening, reflecting reduced volatility before a potential expansion. If HYPE can break and hold above $50 with strong momentum, it would confirm the bullish reversal and open targets towards $55 to $60.

Hyperliquid Faces Heavy Short-Pressure

A new twist has entered the picture for Hyperliquid (HYPE) as data shows $17.6M in shorts buildups. While on the surface this might look bearish, participants know that such heavy short positioning can often fuel a squeeze if buyers manage to push the price higher. With HYPE already holding key support in the $44 to $45 range, the presence of these shorts could act as extra fuel should momentum return.

HYPE sees $17.6M in shorts pile up, setting the stage for a potential squeeze if price breaks above $50. Source: CryptoMokado via X

Analyst CryptoMokado highlighted the “HYPE Assistance Fund,” pointing out that shorts may end up playing into the hands of bulls. If price clears the $50 neckline, it would not only confirm the inverse head and shoulders setup but also force shorts to cover, creating sharp upward pressure.

Price Pulls Into a Fourth Red Day

HYPE Hyperliquid price has now notched its fourth straight red daily candle, a rare streak considering the token hasn’t posted more than five consecutive red days since late 2024. While the short-term trend is clearly under pressure, history shows that HYPE tends to find its footing before the slide extends too far. With price hovering in the mid-$44 zone, this area doubles as both a psychological level and a key structural support.

Hyperliquid logs its fourth straight red candle, testing the $44 support zone as participants watch for signs of a rebound. Source: HoodieChicken via X

Interestingly, revenues on the Hyperliquid platform continue to trend higher even as price drops. Strong fundamental inflows can provide a cushion against prolonged downside. If HYPE avoids a fifth consecutive red day and manages a bounce, the setup could quickly shift back towards retesting the $47 to $50 zone.

Hyperliquid’s revenues keep climbing despite price weakness, hinting that strong fundamentals may cushion downside risks. Source: HoodieChicken via X

Final Thoughts

HYPE is currently trading at $44.00, down 3.00% in the last 24 hours, as it struggles to hold its support zone. The $44 to $45 range has been a key defense area for buyers, but the pressure of four straight red candles shows that momentum is still tilted toward the downside in the short term.

Hyperliquid’s current price is $44.07, down -3.86% in the last 24 hours. Source: Brave New Coin

A breakout above the $50 neckline remains the main target to watch, as it could trigger both an inverse head and shoulders confirmation and a potential short squeeze. Until then, HYPE’s price action stays caught in a tight range.

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Filed under: Bitcoin - @ August 30, 2025 7:25 pm