Hyperliquid’s HYPE Price May Plunge 30% As US–Iran Tensions Escalate

Hyperliquid’s HYPE token is flashing a classic bearish reversal setup as renewed US-Iran tensions pressure risk assets.

HYPE Forms Head-and-Shoulders Pattern

HYPE has dropped nearly 4% on the day, trading near $55.60, placing the token directly on the neckline of a potential head-and-shoulders pattern on the daily chart.

The structure began to form after HYPE’s sharp rally in May. The left shoulder appeared near $65–$67, followed by a higher peak near $78–$80 that formed the head. The latest rebound failed around the same $65–$67 zone, creating the right shoulder.

That makes the $55–$56 area the key neckline to watch.

A decisive daily close below this support would confirm the bearish reversal pattern. Based on the height between the head and the neckline, the measured downside target sits near $39–$40, or about 30% below current prices.

That target also aligns with HYPE’s previous consolidation zone from May, where buyers had stepped in before the token’s vertical breakout. In other words, a neckline breakdown could send the price back to the same area where the rally first accelerated.

HYPE’s momentum picture also supports caution. The daily relative strength index (RSI) has fallen sharply from overbought territory and is now trading below its signal line. That shows bulls are losing control after weeks of strong upside momentum.

US-Iran Tensions Add Pressure to Risk Assets

The bearish chart setup is forming as geopolitical stress returns to global markets.

The US launched strikes on Iranian targets after Washington linked Tehran to the downing of an American Apache helicopter near the Strait of Hormuz. Iran then retaliated with attacks targeting US-linked positions in the Gulf region.

The escalation has weighed on equities, with Asian stock markets falling sharply as traders reduced exposure to risk assets.

Crypto tends to react poorly during such periods, especially high-beta tokens that rallied strongly before the shock. HYPE fits that category. The token’s May rally gave traders large unrealized gains, making it more vulnerable to profit-taking when macro stress rises.