What to Know
- Crypto analyst Ali Martinez identifies a potential head and shoulders pattern, warning Hyperliquid could face a 22% price correction.
- HYPE’s 12-hour chart shows weakening buying momentum, with a confirmed breakdown below $76 to $78 potentially triggering further selling pressure.
- Analysts identify $62 and $59 as downside targets, while a recovery above $91 could weaken the developing bearish chart formation.
Hyperliquid (HYPE) faces a potential 22% correction as a developing bearish chart pattern threatens its recovery. According Ali Martinez, Hyperliquid (HYPE) faces a potential decline toward $62 and $59 as a developing head-and-shoulders pattern places its $76 to $78 support zone at risk, with the token trading around $83.32.
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HYPE Head-and-Shoulders Pattern Signals Growing Downside Pressure
The 12-hour chart shows three distinct price peaks associated with bearish reversals, with HYPE initially climbing toward $89 before retreating toward $77 and establishing the pattern’s left shoulder. Subsequently, buyers pushed HYPE toward $97, establishing the formation’s highest point before renewed selling pressure triggered another decline and a recovery attempt toward $91.
This lower peak established the developing right shoulder, indicating weakening buying momentum as HYPE struggled to regain previous highs while approaching its critical neckline support. Martinez identified a sustained 12-hour close below $76 to $78 as confirmation of the bearish setup, potentially exposing HYPE to further losses toward $62 and eventually $59.
Critical Support Could Determine Hyperliquid’s Next Price Direction
Despite the bearish formation, Martinez emphasized that the projected correction remains unconfirmed without a neckline breakdown. Previous rebounds around $76 to $78 demonstrate that buyers have defended this region.
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A successful recovery could prevent the anticipated decline and support another attempt toward nearby resistance. Meanwhile, reclaiming the right shoulder’s high around $90 to $91 would weaken the bearish outlook.
Conversely, losing neckline support could strengthen selling pressure and increase the likelihood of reaching the identified targets. From $83.32, a decline toward $59 would represent approximately 29% in losses.
Hyperliquid’s next movement depends on whether buyers defend the $76 to $78 support region. A confirmed breakdown would strengthen Martinez’s bearish projection, while a recovery above $91 would challenge the developing pattern.
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