$HYPE Set for $39? Chart Signals Strong Downside Play

Key Insights 

• HYPE rejected twice near $50, signaling weakening momentum and a possible downside continuation to $39.
• Price now below 20/50 EMAs; trend shift confirmed with $42 acting as interim support zone.
• Volume profile shows strong POC at $38, a key area traders watch for potential bounce.

Hyperliquid (HYPE) has come under pressure after failing to break through the upper boundary of its trading range. Price action shows a second rejection near the $50 resistance zone, marking what could be a key short-term turning point. The asset has since fallen over 5% to trade near $43.64.

Rejection at Channel Top Triggers Sell-Off

The chart shared by Ali Martinez points to a repeated rejection at the top of a clearly defined price channel. Two arrows on the chart mark failed breakout attempts near the $50 level. 

Besides, the pattern now resembles a lower high, often associated with a bearish setup. The projected dotted path in the chart indicates $39 as the next potential target area.

The price drop to $43.64 confirms short-term selling pressure. According to the analysis, “After a rejection at the top of the channel, Hyperliquid $HYPE targets $39.” For this scenario to play out, continued bearish momentum and a clean move below $42 may be required. The $42 zone is marked as an intermediate support level, where some consolidation could occur before further downside.

Trend Shift Confirmed by EMA Break

Further confirmation of weakness comes from the 4-hour chart shared by Crypto Bully. HYPE has dropped below the 20 and 50 EMA levels, typically used by traders to monitor short-term trends. This move is viewed by some as a trend shift. The analyst noted, “Price trading below EMA 20/50 (change in trend),” pointing to reduced bullish control.

The current trading price of $43.06 places the asset below its weekly open of $46.04. The lower highs and price trading below key averages support the idea that sellers may remain in control in the near term.

Volume Profile Points to $38 Support Zone

The volume profile shown in the same chart adds another layer of technical interest. The Point of Control (POC), which represents the price with the highest volume traded, aligns near the $38 level. This zone is also marked as a demand area and is highlighted in green as a possible support.

“Expect price to trade into this support level which also aligns with Volume profile,” the post noted. A bounce from this zone may be possible if buy-side volume increases. Until then, the chart structure suggests a path toward the $38–$39 region unless support holds earlier. Traders are monitoring these levels closely for any sign of reversal.