Hyperliquid (HYPE) Price Prediction: All Eyes on $42 as Bulls and Bears Clash at Critical Level

Market participants are watching Hyperliquid closely as it hovers just below key resistance. After days of sideways movement, HYPE is starting to show potentially mixed signals.

Hyperliquid is inching toward a key inflection point as price now sits just 12% below its all-time high of $45.80. After a few weeks of choppy sideways movement, the daily chart shows momentum slowly tilting in favor of bulls. The most recent close is 40.90 in the last 24 hours. If price can push through this upper cluster, the path toward a retest of ATHs opens up fast.

Hyperliquid’s current price is $40.90, up 5.22% in the last 24 hours. Source: Brave New Coin

What makes this setup notable is how tightly contested the current range is. Bears have been defending the $41 to $42 area, while bulls continue to defend their support levels to avoid any breakdowns. With the macro landscape improving and volume ticking up, Hyperliquid’s next move could be decisive. Whether this range becomes the staging ground for a clean breakout or another rejection, the 12% gap to ATH is now a battleground.

Building on the tight range, Hyperliquid price has now printed a clean ascending triangle just below its all-time highs, typically a bullish continuation structure. After nearly two months of steady consolidation, the price has respected the rising trendline support while repeatedly tapping the $41 to $42 resistance band. If the triangle breaks upward, the measured move could extend well into the $50 zone.

Hyperliquid forms a textbook ascending triangle just below ATH, signaling a potential breakout above $42. Source: Gumshoe via X

The fundamentals are supporting this setup, too. Gumshoe points to Phantom wallet integration and the maturing narrative around HYPE as an infrastructure-layer leader. With HYPE continuing to outperform other alts, the consolidation here might not be weakness; it might just be a staging phase before the next leg higher.

Coming off a strong triangle breakout and rally toward the $42 mark, HYPE Hyperliquid price is now brushing up against overhead supply, and it’s starting to show. The 4-hour chart from Token Talk shows that the price surged above resistance but has since stalled near a heavy reaction zone.

Hyperliquid stalls near heavy supply after rally, with a key retest of the $39to $40 zone now in focus. Source: Token Talk via X

The rally paused right around prior highs, and now a short-term retest is in play. If this pullback holds the $39 to $40 area cleanly, it could set the stage for a continuation move. But a failure to bounce there would open up downside risk back into the previous consolidation range.

The caution around HYPE’s current levels is starting to build as price action loses momentum right under resistance. Famous crypto analyst Trader_XO’s comment reflects what many are starting to notice: if this recent move fails to reclaim and hold above $42, Hyperliquid could be looking at a lower high.

This would mark the first real structural sign of weakness in weeks. A breakdown from here wouldn’t just be a minor pullback; XO points to a possible slide toward the $28 to $30 region if the rotation kicks in fully.

XO warns of a potential lower high forming below $42, with downside targets near $28–$30 if momentum fades. Source: Trader_XO via X

Price rejecting at supply and then rolling over into lower support zones would not be out of character, especially after a prolonged grind upward. Bulls still have time to reclaim momentum, but they’ll need to flip $42 decisively and defend $39 to avoid letting this lower high turn into a broader distribution pattern.

Despite the recent hesitation around the $41 to $42 resistance, bulls haven’t packed up just yet. In fact, they’re getting a backup. According to Tobias Reisner, the Assistance Fund stepped in with a $2.64 million buyback of HYPE on July 10. Not only is that one of the biggest single-day injections so far, but there’s chatter that a $10 million buyback day could be on the horizon. That kind of support doesn’t go unnoticed in a market this technical; it’s a signal of intent.

Assistance Fund injects $2.64M into HYPE, offering bulls critical support near key levels. Source: Tobias Reisner via X

While the recent charts showed potential pullbacks and a lower high formation, this kind of aggressive buyback adds an important layer of support. It’s not a guaranteed reversal, but it does reduce the odds of a clean breakdown. If the price can hold above $39 and the fund activity continues, this might be the cushion bulls need to reload and challenge $45.80 again.

While the bullish case for Hyperliquid is backed by strong fundamentals, deflationary tokenomics, and recent buyback support, it’s not without risk. Price still sits right below a key resistance at $42, and momentum is starting to stall. A failure to flip this level cleanly could open the door to a deeper retest toward $30, especially if broader market sentiment turns. That said, the structure remains intact for now, and bulls still have their chance.