HYPE Shows Early Bullish Recovery, $51 Target in Sight

• HYPE rebounds from January base as higher lows signal trend reversal potential ahead
• Price approaches $38 resistance while $40–$41 Fibonacci level becomes key test ahead
• Rising open interest and exchange inflows suggest renewed HYPE accumulation trend

Hyperliquid’s native token HYPE has entered a recovery phase after months of weakness, as price action signals a possible bullish trend reversal. The HYPE/USDT pair recently climbed toward the $37–$38 resistance zone following a strong rebound from the $20–$21 bottom. Market activity has also intensified, with rising participation and improving derivatives metrics supporting the upward move. 

Price Structure Shows Early Bullish Recovery

The broader trend suggests that HYPE may have completed a bottom formation earlier this year. Between September and December, the token remained in a clear downtrend. Prices gradually declined until January, when the market formed a base near $20.

Since then, the structure has shifted. HYPE has started printing higher lows while gradually pushing toward higher highs. Consequently, analysts view the recent rally as an early stage of trend recovery.

Currently, HYPE trades around $36–$37 after several weeks of steady gains. Moreover, price action now approaches an important resistance band between $37.5 and $38. This area previously capped upward attempts.

Technical levels based on Fibonacci retracement reinforce the importance of the next resistance zones. The $40–$41 range marks the 0.5 Fibonacci level and represents a critical barrier. Significantly, a sustained break above this level could strengthen bullish momentum.

Beyond that, the next resistance appears near $44.5, aligned with the 0.618 Fibonacci level. If buying pressure continues, analysts expect liquidity to increase near the $51–$52 region.

Indicators Signal Strength but Warn of Pullback

Technical indicators also provide mixed short-term signals. The Donchian Channel shows price pushing against the upper band. This movement typically indicates strong momentum and active buying interest.

However, the Stochastic RSI currently sits near the 96 level. Hence, the indicator signals an overbought condition. Such readings often precede short consolidation or retracement phases.

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Immediate support now sits around $34.5, which previously served as a breakout level. Additionally, a stronger support cluster appears between $31.5 and $32. If the market weakens, traders may watch the $29.5 level near the lower channel boundary.

Market Flows and Derivatives Data Improve

Derivatives and on-chain activity also reveal shifting market sentiment. Open interest previously climbed above $2.5 billion during the earlier rally period. However, it dropped sharply in October as traders closed leveraged positions.

Since then, open interest stabilized between $1.2 billion and $1.6 billion. Recently, it rebounded toward $1.47 billion, indicating renewed participation in the market.

Spot exchange flow data also highlights changing behavior among investors. Earlier months showed persistent outflows that reflected sustained selling pressure. However, inflows have recently increased alongside price gains. Moreover, this shift suggests traders may be accumulating again as the market attempts to recover.

Technical Outlook for Hyperliquid (HYPE) Price

Key levels remain clearly defined as Hyperliquid approaches a decisive price zone after its recent rebound from the $20 region.

Upside levels: $37.5–$38 stands as the immediate resistance where price recently faced rejection. A sustained breakout above this zone could push HYPE toward $40–$41, which aligns with the 0.5 Fibonacci retracement level. Moreover, clearing this barrier may accelerate bullish momentum toward $44.5 at the 0.618 Fibonacci level. If buying pressure strengthens further, the next liquidity target could appear near $51–$52.

Downside levels: $34.5 now acts as the first support after serving as a recent breakout point. Below that, a stronger demand cluster sits between $31.5 and $32, where buyers previously stepped in. Additionally, the $29.5 level marks the lower boundary of the current price channel. If bearish pressure increases, the broader support range between $25.5 and $26 could come into focus.

Resistance ceiling: The $40 level represents the most important threshold for the current structure. A confirmed move above this level could flip market sentiment firmly bullish and support a continuation toward higher Fibonacci targets.

Technically, HYPE trades near the upper boundary of its Donchian Channel, which reflects increasing bullish momentum. However, the Stochastic RSI shows overbought conditions. Consequently, the market may see short-term consolidation before another directional move develops.

Will Hyperliquid Continue Rising?

Hyperliquid’s near-term outlook depends largely on whether buyers maintain support above $34.5. Holding this level would keep the higher-low structure intact and preserve the developing uptrend. Consequently, the market could attempt another push toward the $40 resistance cluster.

Moreover, derivatives data shows renewed participation as open interest stabilizes near $1.47 billion. Spot flow trends also indicate improving sentiment, with recent inflows suggesting accumulation during the latest rebound.

However, failure to defend the $34–$32 support region could weaken the recovery structure. In that scenario, price may revisit the $29.5 channel support before buyers attempt another stabilization phase.

For now, HYPE trades within a pivotal range. A breakout above $40 could open the path toward $45–$50, while a deeper pullback would test the strength of the developing bullish structure.