Peter Smith
HyperLiquid (HYPE) has been one of the stronger performers in the current cycle — but after every sharp rally comes a reality check. The asset is now drifting lower toward a critical support zone, and how price reacts here could set the tone for weeks ahead.
HYPE Drops Toward $28 Key Support After Sharp Expansion
HyperLiquid has entered a corrective phase following a strong upward move in recent weeks. Crypto analyst AltcoinSherpa flagged the asset earlier for its notable relative strength, backed by solid buying activity and broader momentum across risk markets. But over the past two weeks, price has started bleeding lower — a pattern he describes as typical behavior after a sharp expansion phase.
The chart now puts a major technical level at $28 front and center. This zone defines the current structure, and losing it would raise real questions about the bullish case built during the prior rally. HYPE price breaks $31 resistance after CPI-driven rally — similar post-breakout consolidation played out then too, with price cooling before deciding its next direction.
What Happens at $28 Will Define HyperLiquid's Next Move
Despite the pullback, the broader outlook for HYPE still looks relatively strong compared to much of the altcoin market. The current dip reads more like a healthy cooldown than a structural breakdown — for now.
Markets regularly shift into support-testing mode after strong runs, and what happens at $28 is the defining signal. A hold here reinforces the narrative of a clean retracement before the next leg up. A breakdown, on the other hand, could push sentiment toward a deeper corrective phase and trigger further selling.
The reaction at this level will be the clearest indicator of where HyperLiquid momentum is actually headed in the near term.
Peter Smith
