Alex Dudov
After getting rejected from resistance and sweeping through liquidity levels, HYPE is now testing a make-or-break support zone that could set the tone for its next move. While sellers are still defending the $50 area, there's growing evidence that buyers are quietly accumulating between $35 and $38 — a range that's triggered strong bounces in the past.
Technical Picture: Liquidity Cleared, Support Being Tested
The token recently flushed built-up liquidity along its short-term rising trendline, which is typical behavior during healthy corrections before accumulation phases kick in. The 4-hour chart shows two clear zones of interest: a supply area between $50 and $52 where sellers have been active, and a demand zone around $35 to $36 that lines up with previous buying interest.
Right now, HYPE is trading around $40–$41, sitting in the middle of this range. Some traders have already started layering in small positions at $38.4, with plans to add more aggressively if price drops deeper into the demand zone. The price action shows a compression pattern forming, with lower highs bumping up against stable lows — the kind of setup that often precedes a directional breakout. If the token can stabilize here, it could attract value buyers looking for entries before a potential move back toward $45–$50.
Key Price Levels to Watch:
- Supply Zone: $50–$52 (resistance area where selling pressure emerges)
- Current Range: $40–$41 (mid-range consolidation)
- Demand Zone: $35–$36 (critical support where buyers have historically stepped in)
- Invalidation Level: Below $35 (would shift sentiment bearish and open up lower targets)
What's Driving the Pullback
The recent drop came alongside news about an attempted HLP exploit that created temporary uncertainty in the community. However, on-chain activity and project updates suggest that buyback programs and ecosystem development are continuing as planned, which has helped keep fundamental sentiment relatively stable. What looked like a panic-inducing event may have actually provided a convenient technical reset — flushing out overleveraged positions while giving longer-term holders a chance to re-enter at better prices. The combination of cleared liquidity and continued buyback activity suggests this phase might be more about controlled accumulation than genuine selling pressure.
Trading Approach and Market Positioning
The current setup reflects a patient, liquidity-based trading approach rather than emotional reaction to price movement. The focus is on waiting for clear demand confirmation rather than trying to catch a falling knife. Small initial positions around $38.4 allow for scaling into larger entries if the original demand zone gets tested, which is a disciplined way to build risk-managed exposure. This strategy stays valid as long as price holds above the $35–$36 area. A breakdown below that level would flip the script and shift attention to deeper support zones instead.
What's Next
HYPE is at a critical juncture as it consolidates above demand. The recent price action has effectively reset the playing field — clearing out excess leverage, removing short-term noise, and setting up for a potential recovery if buying interest materializes. Traders are staying disciplined here, watching to see if the $35–$36 zone holds and triggers a reversal back toward the $45–$50 resistance area. If that happens, it could mark the beginning of a fresh leg up that aligns with improving sentiment across altcoin markets.
Alex Dudov
