HYPE's Technical Setup: Strategic Entry Points for Momentum Traders in a Volatile Market

The cryptocurrency market in November 2025 has been a tale of two tokens: while Bitcoin languishes amid a 30% decline from its October peak and a broader sector grappling with uncertainty according to reports, Hyperliquid's HYPE token has defied the trend. Up 35% for the year and now ranked among the top 12 cryptocurrencies by market capitalization according to analysis, HYPE has captured the attention of momentum traders. However, its technical setup remains a double-edged sword, blending bullish momentum with bearish risks. For traders seeking strategic entry points, understanding this duality is critical.

Technical Analysis: A Tug-of-War Between Bulls and Bears

Hyperliquid's price action near the $35.51 resistance level has become a focal point for traders. This level, which has historically capped rallies since mid-November according to technical forecasts, now faces renewed pressure as the Relative Strength Index (RSI) hovers at 46. Notably, the RSI has shown divergence between November 22 and December 1, 2025, signaling growing bullish momentum despite the price remaining below key resistance. This divergence, coupled with a bullish MACD crossover above the signal line and expanding green histogram bars, suggests a potential breakout scenario.

However, the broader technical picture is not uniformly optimistic. A looming Death Cross pattern-where the 50-day and 200-day exponential moving averages (EMAs) converge-threatens to signal a bearish trend if short-term selling pressure intensifies. Meanwhile, bearish continuation patterns, including a strong confluence of resistance around $38 and a Head and Shoulders formation targeting a long-term bottom near $19, underscore the risks of overextending long positions.

Strategic Entry Points: Balancing Risk and Reward

For momentum traders, the most compelling entry point lies in a clean breakout above $35.51. A decisive close above this level would validate the bullish thesis and target an initial price objective of $40.00. To manage risk, traders should consider placing stop-loss orders just below the $30 support zone, which has historically acted as a critical psychological barrier according to technical analysis.

The RSI divergence observed between November 22 and December 1 according to technical indicators adds another layer of nuance. While this suggests a potential shift in momentum, traders must remain cautious. The broader market environment-marked by a U.S. government shutdown, delayed economic data, and regulatory uncertainty-introduces external volatility that could override technical signals. Position sizing should reflect this, with smaller entries used to test the waters before scaling into larger positions.

The Bigger Picture: HYPE's Long-Term Viability

Despite its short-term allure, HYPE's speculative nature and unclear U.S. regulatory status cannot be ignored. While its high transaction speed and Solana-like scalability according to industry analysis position it as a contender in the Layer 1 race, long-term success will depend on its ability to sustain adoption and innovation. For momentum traders, this means treating HYPE as a high-risk, high-reward asset rather than a core holding.

Conclusion: A Calculated Approach in a Fractured Market

Hyperliquid's technical setup in November 2025 presents a unique opportunity for momentum traders willing to navigate a volatile landscape. The convergence of bullish RSI divergence, a supportive MACD, and a key breakout level offers a compelling case for a short-term trade. Yet, the presence of bearish patterns and macroeconomic headwinds demands disciplined risk management. As the market continues to grapple with uncertainty, traders who balance aggression with caution may find themselves well-positioned to capitalize on HYPE's next move.