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Hyperliquid’s (HYPE) 40% Decline Fades as Breakout Sets Stage for Recovery

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Insha Zia

Key Takeaways

  • Hyperliquid (HYPE) fell 40% after its all-time high price.
  • HYPE has shown resilience by breaking out from resistance.
  • The price is possibly creating a horizontal trading range.

Hyperliquid executed one of the most successful airdrops in recent crypto history on Nov. 12, 2024, with a $1.2 billion valuation at $3.90 per token.

Since then, HYPE’s price performance has far exceeded expectations, soaring to an all-time high of $35.73 on Dec. 21—an 800% jump from its initial launch.

Despite a 40% retracement following the peak, HYPE has entered 2025 with renewed momentum, breaking through a key descending resistance trend line. Here’s what the charts suggest about HYPE’s next move.

VanEck’s Hyperliquid Report

A recent report  by investment firm VanEck has made the rounds in the crypto community on X.

VanEck praised Hyperliquid’s performance, claiming it was miles ahead of competitors such as dYdX and GMX in terms of throughput, fees, and innovative features.

According to VanEck, the main reason for its outperformance is that Hyperliquid is hosted on a purpose-built blockchain.

The trading volume and TVL in December highlight its success. Hyperliquid has over $2.2 billion in TVL, while dYdX has never exceeded $600 million.

It also ranks eighth in weekly revenue  from all protocols despite being the most recent entrant in the list by a considerable margin.

HyperLiquid Data
Hyperliquid TVL & Volume | Credit: DeFiLlama 

However, VanEck has concerns about Hyperliquid’s long-term viability, mostly because it is a decentralized exchange (DEX) built on open-source code that is easy to copy. The firm notes the initial airdrop success and ensuing decline of other DEXes since 2020.

Since users likely flock to the platform that offers the best performance, Hyperliquid’s business model remains at risk unless it consistently delivers new, innovative features to meet the community’s expectations.

It is worth mentioning that metrics such as volume and TVL peaked in November/December and have fallen since.

HYPE Price Breaks Out

The HYPE price fell under a descending resistance trend line after its all-time high. The decline culminated with a low of $21.54 in January 2025 and briefly caused a breakdown below $23.

However, HYPE regained its footing and started an upward movement, breaking out from the resistance trend line.

In addition, HYPE’s price prevented the breakdown, confirming the $23 area as support. In turn, the price movement has created a horizontal range between $23 and $35, with the midline at $29.

The horizontal range is indicative of consolidation. A breakout is more likely if the price trades above the midline and vice versa.

Hype Trading Range
HYPE/USDT Four-Hour Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators are also fairly neutral. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are barely above their bullish thresholds at 50 and 0, respectively.

So, HYPE’s trend is not clear. A movement above the middle of the range will be a bullish development, while a breakdown below $23.30 will confirm the trend as bearish instead.

Uncertain Trend Ahead

The HYPE price has shown strength by saving a breakdown and moving above a descending resistance trend line. However, the price may be trading inside a horizontal trading range, indicative of consolidation. So, the trend may be neutral in the next few weeks.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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