HYPE Falls 28.5% as Key Resistance Fails and Price Tests $30 Support

HyperLiquid’s native token, HYPE, has experienced a significant correction after breaking down from key resistance at $42.24, marking a pivotal shift in market dynamics. The token briefly reclaimed the level during its move toward a new all-time high but failed to sustain momentum, triggering a 28.5% drop toward the $30 support zone [1]. This breakdown reflects a failed auction at the critical resistance level, signaling a weakening in market structure and a bearish divergence in price action [2].

The $42.24 level, previously a support after hitting record highs, has now become a point of resistance. As the price moves lower, attention is turning to the point of control near $30, which remains untested in this correction phase. If HYPE manages to stabilize above this level on a daily closing basis, the decline could be viewed as a healthy retracement within the broader uptrend [2]. However, a failure to defend this zone increases the likelihood of a further pullback toward $26.53, the next major high-timeframe support level [2].

Volume analysis provides additional insight into the ongoing weakness in HYPE’s structure. Trading volume has declined steadily since the token reached its peak, indicating a lack of buyer conviction at higher levels [2]. The absence of strong directional volume suggests the price could remain range-bound until renewed buying interest emerges.

From a technical standpoint, the market is now testing lower liquidity pockets. A successful defense of the $30 point of control could signal a reversal, but a breakdown toward $26.53 remains a high-probability scenario. The current bullish trend is considered intact as long as the value area low holds on a closing basis. A loss of that support would break the existing market structure and could lead to further consolidation or even a reversal in the trend [2].

The broader bearish context is reinforced by the selloff, as the market tests support levels not yet engaged in this correction cycle [3]. This breakdown mirrors broader weakness in the crypto market, where cautious positioning and strong volume confirmation are now prerequisites for any sustainable recovery [1]. Until renewed demand is demonstrated, the price action is expected to remain within a larger range, with traders closely monitoring the $30 and $26.53 levels for directional clues.

Sources:

[1] AInvest, [https://www.ainvest.com/news/hype-faces-28-5-drop-key-resistance-fails-support-tested-2508/](https://www.ainvest.com/news/hype-faces-28-5-drop-key-resistance-fails-support-tested-2508/)

[2] Crypto, [https://crypto.news/hyperliquid-price-analysis-hype-enters-correction-after-failed-breakout-30-in-sight/](https://crypto.news/hyperliquid-price-analysis-hype-enters-correction-after-failed-breakout-30-in-sight/)

[3] The, [https://m.economictimes.com/crypto-news-today-live-01-aug-2025/liveblog/123028555.cms](https://m.economictimes.com/crypto-news-today-live-01-aug-2025/liveblog/123028555.cms)