Hyperliquid is at a critical technical crossroads. Currently trading around $30.29, the token has recently breached the crucial $30 support level, fueling intense debate: is a $20 retest inevitable, or are we just seeing a healthy correction before a move to new highs?
🔍 Technical Analysis: The $20 Support vs. The $35 Resistance
The chart presents a bounce or break scenario. While some analysts maintain a bullish outlook, targeting $38–$45 if momentum returns, the bearish case for $20 is grounded in clear technical signals:
• Key Support Levels: If the current $28–$29 demand zone fails, the next significant floors sit at $26 and $21. A "bearish case" minimum of $20 is widely cited by experts as a potential cycle bottom for 2026 if market sentiment worsens.
• The "Head & Shoulders" Threat: $HYPE recently rejected off the $35 resistance, forming a structure that bears the hallmark of a bearish reversal.
• Momentum Indicators: With the RSI showing a descending channel and the Fear & Greed Index hitting "Extreme Fear" (10/100), the path of least resistance appears to be down in the short term.
💎 Fundamental Strength: Why $20 Might Be a Bear Trap
Despite the technical bleed, Hyperliquid’s ecosystem fundamentals remain robust. The platform's massive trading volume peaking at $2.6T regularly dwarfs major competitors, and 97% of protocol fees are channeled into a reflexive, deflationary $HYPE buyback mechanism.
My Opinion: While a dip to $20 is a technical possibility if Bitcoin fails to stabilize, the sheer volume of buybacks and institutional interest makes it a high-probability accumulation zone. I’m watching for a reclaim of $32 to confirm the bulls are back in control. #MarketRebound
$ASTER