Hyperliquid faces 25% crash risk: here’s why

Hyperliquid has posted a potential local top following its recent all-time high, and signs of a healthy correction are beginning to appear. While the overall trend remains bullish, current technical signals suggest the market may be preparing for a retracement, one that could set the stage for the next leg higher if key levels hold.

The pullback is not yet aggressive on Hyperliquid (HYPE), but there is early evidence that a deeper correction could materialize if crucial support levels fail. Traders should monitor how price interacts with the current value area before determining short-term bias.

Key technical points,

• Value Area High Support: $0.33; last major breakout level, now retested.
• Critical Support Zone: $0.26; confluence of daily level, 0.618 Fibonacci, 200 MA, and POC.
• Market Structure: Still bullish; correction considered healthy unless support fails.

Price is currently trading above the $0.33 value area high, which had previously been reclaimed with multiple candle closes. This level served as a breakout point before the latest all-time high was printed. While price remains above this level, bulls are in control, but a loss here could trigger a move toward lower support.

The first major area of interest for a potential higher low lies around $0.26, which carries strong confluence. This zone includes a daily support level, the 0.618 Fibonacci retracement, the upslope of the 200-day moving average, and sits above the point of control. These overlapping supports make it a logical area where bulls may attempt to re-establish trend continuation.

A pullback into this area would represent a correction of more than 25%, which may seem steep, but within a bullish market structure, such corrections are typical and even necessary. A bounce from this zone would confirm the formation of a higher low, a key element in trend continuation.

That said, the value area high at $0.33 remains the last technical defense before this correction scenario becomes active. If bulls can defend it, Hyperliquid may resume its uptrend sooner without visiting lower support.

What to expect in the coming price action

Hyperliquid is currently at a crossroads. As long as $0.33 holds, continuation higher remains in play. However, if this level is lost, expect a deeper correction toward $0.26. This zone offers an ideal spot for a higher low in the ongoing bull trend. Traders should wait for confirmation at either level before taking new positions.