Hyperliquid (HYPE) Price Faces Key Retest as Analyst Calls It a ‘Life or Death’ Zone

The price of HYPE is at a pretty tense moment on the charts right now. After a steady drop in recent days, it's back at a key support level that could decide what happens next.

The price of Hyperliquid (HYPE) is at a crucial moment as it faces a second test of a key support level, according to an X (formerly Twitter) post by cryptocurrency analyst Sjuul.

As the saying goes, Hyperliquid is “playing with life and death” at this point.

Chart: TradingView

After a period of ranging, the trend on the 12-hour chart clearly shows bearish pressure with lower highs and lower lows. Sellers have been largely in control.

There was a strong rally earlier in the chart that began at the point marked with “A.” However, the rally failed to break above the shaded area, which was previously tested as support and now acts as resistance.

After the rally, the price moved into a wide range, failing to hold above the Fib 0.5 level. Once the support broke, the downtrend continued, showing a shift in momentum away from the bulls.

Hyperliquid Key Support Level Retested

The highlighted horizontal zone shows an area of support that was already tested once. Now, it’s under pressure for the second time.

Usually, each retest lessens the strength of the support level, making the outcome at this point even more critical.

This support is also the last identifiable zone before price discovery begins on the downside. A sustained move below it could indicate further losses.

The tweet mentions that it’s the “last standing support,” which may make many traders watch this level closely.

Above the current price, the chart shows a grey-shaded area where support previously existed. After the breakdown, this zone was retested from below and rejected. This move confirms the zone has flipped from support to resistance.

The inability of buyers to reclaim this level indicates that bullish strength is limited. The rejection also reinforces the downtrend and limits any short-term recovery scenarios unless momentum shifts.

Hyperliquid Price at a Technical Decision Point

Market structure and technical analysis suggest that HYPE price is at a decision point.

A bounce from the current support could trigger short-term relief for oversold traders. However, failure to hold the level could result in a deeper decline and put more pressure on buyers.

Sjuul highlights the pressure on bulls to defend the zone as it’s the second time price has tested this level.

The market response in the coming days may set the tone for the next phase of HYPE’s price action. Traders will likely monitor this level closely for either confirmation of a bounce or signs of a breakdown.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Get all our future calls by joining our FREE Telegram group.

We recommend eToro