Hyperliquid (HYPE) Faces Critical Juncture: Short-Term Bearish Momentum and Key Support Levels in Focus

Hyperliquid (HYPE), the token underpinning the decentralized derivatives exchange Hyperliquid, has entered a pivotal phase in its price trajectory. As of November 2025, the asset is grappling with pronounced short-term bearish momentum, having recently breached critical support levels that once anchored its price action. This analysis dissects the technical and fundamental dynamics shaping HYPE's near-term outlook, emphasizing the risks of further downside and the potential catalysts for a rebound.

Short-Term Bearish Momentum: A Breakdown in Confidence

HYPE's price has fallen below the $30 threshold-a level that had historically acted as a psychological and technical floor for the token. As of December 7, 2025, the price traded at $28.35, with analysts noting a "rounding-top formation" that suggests a potential measured move target near $16 if the neckline of this pattern fails. The breakdown below $30 has opened the door for a test of the next key support at $24, particularly if bearish momentum persists according to technical analysis.

Technical indicators corroborate this bearish bias. The Relative Strength Index (RSI) stands at 37.04, signaling oversold conditions but failing to generate a bullish reversal according to market data. Meanwhile, the Stochastic RSI has issued a sell signal, and 23 out of 24 major indicators are aligned with a bearish outlook as per technical analysis. This consensus underscores the fragility of HYPE's current price structure, with even minor macroeconomic or market sentiment shifts likely to accelerate the decline.

Key Support Levels: A Map of the Downside Path

The immediate support levels for HYPE are clustered between $25 and $30, with three critical thresholds identified by analysts:
1. $28.11: A near-term floor that, if broken, would validate the continuation of the bearish trend.
2. $26.67: A secondary support level that could offer temporary respite if buyers step in.
3. $25.14: A deeper technical level that, if breached, would signal a high probability of a move toward $24.

Historically, the $29–$30 zone has acted as a robust weekly support, but its efficacy has diminished following the recent breakdown. Analysts like HornHairs caution that a sustained close below $29 would significantly strengthen the bear case, potentially driving HYPE toward $23 or even $16. Conversely, a rebound above $30 could reignite bullish momentum, with price targets extending to $38–$40. However, this scenario hinges on institutional or retail buyers stepping in to defend the $30 level-a development that remains uncertain.

Fundamental Considerations: Ecosystem Growth vs. Market Realities

While HYPE's short-term technicals are dire, its long-term fundamentals remain intact. Hyperliquid's ecosystem continues to expand, with permissionless perpetual markets and Ethereum Virtual Machine (EVM) composability positioning it as a key infrastructure player in decentralized derivatives according to market reports. Additionally, large whale exposure exceeding $45.85M in long positions suggests some degree of medium-term confidence in the asset's utility and value proposition.

Nevertheless, these fundamentals are unlikely to offset the immediate bearish pressures. The token's 29.69% drop in the last month reflects broader market skepticism, particularly as traders reassess risk appetites amid macroeconomic uncertainty. For HYPE to regain its footing, it must first stabilize near $24–$25 and demonstrate a credible reversal pattern, such as a bullish engulfing candle or a breakout above the $30 resistance.

Risk/Reward and Strategic Implications

Investors and traders must weigh the risks of a continued decline against the potential for a short-term rebound. A bearish scenario sees HYPE targeting $16, with intermediate support at $24 serving as a critical inflection point. Conversely, a successful defense of the $29–$30 zone could spark a rally toward $38–$40, though this would require a significant shift in market sentiment.

For risk-tolerant traders, shorting HYPE near $28–$29 with a stop-loss above $30 could offer favorable risk/reward, while longs may find value at $24–$25 if the token stabilizes. However, given the current technical landscape, a cautious approach is warranted until clearer directional signals emerge.

Conclusion

Hyperliquid (HYPE) stands at a crossroads, with its short-term trajectory hinging on the integrity of key support levels and the resolution of its rounding-top pattern. While the ecosystem's fundamentals remain robust, the immediate bearish momentum-supported by technical indicators and price action-presents a high-risk environment for bulls. Investors are advised to monitor the $24 level closely, as its success or failure will likely dictate the next chapter in HYPE's price narrative.