Hyperliquid Price Risks 10% Decline: But It’s Good News for HYPE Bulls

Hyperliquid’s HYPE risks a plunge in the coming days, but that may mark a good opportunity for bulls to accumulate as the price forms a convincing reversal setup.

HYPE Risks 10% Pullback

HYPE is flashing short-term overheating signals after a sharp rebound toward its June highs.

HYPE traded near $73.35 on June 16, up sharply from its local bottom near $52 earlier this month. The recovery has pushed the token back toward a key resistance zone near $74–$75, where sellers previously capped upside attempts.

However, HYPE’s four-hour relative strength index has climbed to around 79, above the 70 level that typically signals overbought conditions. In other words, the token may be due for a cooling-off move before attempting a cleaner breakout.

The first major downside target sits near HYPE’s 20-period exponential moving average (green), currently around $65.40. A drop to that level would mark a correction of roughly 10% from current prices.

Bullish Reversal Pattern Hints At $100 HYPE Price Next

That pullback may look bearish at first glance, but it could actually strengthen HYPE’s bullish structure.

The token appears to be forming a potential inverse head-and-shoulders pattern on the four-hour chart. The left shoulder formed near $66–$67 in early June, followed by a deeper “head” near $52. A controlled decline toward the mid-$60s could now form the right shoulder.

An inverse head-and-shoulders is typically viewed as a bullish reversal pattern when the price breaks above its neckline. For HYPE, that neckline sits around $74–$75.

A decisive four-hour close above the neckline would confirm the breakout setup. Based on the pattern’s measured move, HYPE could then target the $100–$105 area, up more than 35% from current levels.

Still, bulls need to defend the right-shoulder zone. A deeper breakdown below the 50-period EMA near $62.70, followed by a loss of the $60 level, would weaken the bullish setup and raise the risk of a failed reversal.

For now, HYPE’s overbought RSI suggests a short-term pullback, but the broader chart shows that such a dip could become the final step before a breakout toward $100.