Hyperliquid (HYPE) Price Prediction: Traders Watch Key $42 Level After Sharp Rejection as Bears Eye $35 Support

The token, which powers the Hyperliquid decentralized trading ecosystem, has seen increased volatility in recent sessions following a failed breakout attempt above $42.30. Several market analysts now believe the next directional move could determine whether HYPE resumes its broader uptrend or enters a deeper corrective structure.

Despite short-term weakness, HYPE remains one of the stronger-performing DeFi-related assets over the past year, supported by growing perpetual futures activity, token utility, and Hyperliquid’s fee-sharing model that channels a significant portion of platform revenue into buybacks and token burns.

HYPE Price Faces Pressure After Failed Breakout

Recent technical commentary shared by crypto analyst account MarketCoinpedia pointed to a breakdown below HYPE’s rising trendline near $40.70 after the token posted an intraday decline of nearly 2% on May 12.

HYPE slipped below its rising trendline near $40.70, with weakening RSI and bearish MACD signals increasing the risk of a deeper correction toward the $37–$35 support zone. Source: @MarketCoinpedia via X

According to the analysis, momentum indicators have started weakening. The Relative Strength Index (RSI) reportedly slipped below neutral territory, while the MACD indicator showed signs of turning bearish. The post warned that a sustained move below the $42.17 region could expose HYPE to additional downside toward support zones around $37.87 and $35.05.

Another market analyst, TXGTRADES, highlighted a similar shift in sentiment after HYPE briefly pushed above the $42.30 resistance level before quickly reversing lower. The analyst described the move as a failed breakout and suggested that the market structure had temporarily tilted bearish.

“Breakout above resistance followed by weakness and close back below the level,” the trader noted while identifying the $35.80 area as a potential support region where buyers may attempt to regain control.

The rejection around $42 has become increasingly important for traders because the level previously acted as a breakout trigger during HYPE’s earlier rally phases. A successful reclaim could revive bullish momentum, while repeated failures may encourage short-term sellers to target lower support areas.

Traders Monitor Key Support Zones Around $40

While bearish scenarios are gaining attention, some traders still see the current pullback as a possible accumulation opportunity.

Crypto trader TraderSveezy recently identified the $40.00–$40.20 region as a notable demand zone on the six-hour perpetual chart. The analyst described the area as a confluence of higher-timeframe trendline support and historical buying interest.

HYPE is testing a key confluence support zone near $40, with analysts targeting a potential rebound toward $47.15 if the higher-timeframe trendline remains intact. Source: @TraderSveezy via X

The proposed setup included an entry around $40.18, additional accumulation near $39.55, a stop-loss below $38.60, and a potential upside target near $47.15 if support holds.

That outlook aligns with broader TradingView data showing a mixed but largely neutral technical picture for HYPEUSDT. Oscillators and moving averages currently reflect market indecision rather than a clear directional trend.

TradingView’s broader assessment suggests that HYPE remains in a transitional phase. The token is trading near important moving average zones after cooling off from earlier gains while still maintaining a stronger long-term structure compared to many altcoins.

The analysis also notes that immediate resistance sits between $42 and $45, while stronger psychological resistance remains near the $50 mark. On the downside, traders continue monitoring support levels around $38–$40, followed by the mid-$30 region if selling pressure intensifies.

HYPE Price Prediction Remains Dependent on Market Structure

For now, HYPE appears caught between competing market narratives. Short-term indicators suggest caution after the failed breakout near $42, but longer-term momentum and ecosystem fundamentals continue supporting constructive sentiment around the project.

Hyperliquid (HYPE) was trading at around $40.37, down 2% in the last 24 hours at press time. Source: Brave New Coin

A decisive move above resistance could restore bullish confidence and reopen discussions about a return toward the $50 area. Conversely, losing the $40 support zone may increase the likelihood of a deeper retracement toward $35 support levels highlighted by several analysts.