Hyperliquid (HYPE) Price Eyes 10% Pullback—Is a Short Squeeze Set Up in Play?

Hyperliquid (HYPE) has drawn strong market attention in recent days, but the price action tells a more cautious story. Despite rising interest, HYPE continues to trade in a steeply descending trend, losing more than 25% since the start of the month. The token now appears vulnerable to another 10% pullback in the near term as it approaches a critical support zone.

This phase could prove decisive for the broader HYPE price outlook. If sellers maintain control, the ongoing downtrend may accelerate. However, the bearish pressure could quickly fade if bulls step in with conviction. A sustained move back above the $30 level before the week closes would signal renewed strength and potentially invalidate the short-term bearish structure. Until then, HYPE remains at a key technical crossroads.

So what’s next? Will the HYPE price break above $35 and reach $40 or drop below $25?

As reflected on the daily chart, the HYPE price recently broke out of a falling wedge and rallied toward the local resistance near $35. However, repeated failures to secure a close above this zone triggered visible exhaustion, leading to a sharp rejection. Momentum has started to fade, with RSI slipping into a descending parallel channel, signaling weakening bullish control. This setup raises the risk of a move toward the local support band between $27 and $28, with a deeper test near $25 if selling pressure persists. 

Notably, the decline appears driven more by waning bullish participation than aggressive selling, as volumes have steadily dried up. This lack of conviction suggests the current move is corrective rather than a full trend reversal. If HYPE holds the support zone and volume revives, a rebound remains possible, potentially setting the stage for another attempt toward the higher resistance range.