Hyperliquid (HYPE) Price Prediction: Momentum Fades as Technical Breakdown Eyes $28 Support

Hyperliquid has just flashed a warning sign. After riding a strong uptrend for weeks, the token has broken below its 4-hour Ichimoku cloud. With price hovering around $34 and nearly $100 million in long positions stacked between $30 and $33, participants are now watching closely to see if this dip turns into a deeper correction.

Hyperliquid just slipped beneath its 4-hour Ichimoku trend cloud, a level it hasn’t lost since trading around $15. According to analyst CryptoCurb, this breakdown marks a notable technical shift, as the cloud has acted as a reliable support base for much of HYPE’s parabolic rise over recent weeks.

Hyperliquid slips below its 4H Ichimoku cloud for the first time since $15, signaling a potential trend shift. Source: CryptoCurb via X

Analyst CryptoCurb notes that $40 is now the key level to watch. A reclaim of that zone would restore bullish structure and potentially reset the upward trend. Until that happens, this dip outside the cloud could invite more cautious price action or sideways consolidation.

After losing cloud support earlier this week, HYPE is now slipping further, trading around $34.10. The chart shared by Cryptorizz shows price now testing the midline of the Bollinger Bands, with the lower band resting near $31.5, the next key support. That level also lines up with recent consolidation zones from early June, making it a likely area where dip-buyers could show interest if momentum doesn’t recover soon.

HYPE tests mid-Bollinger Band as downside pressure builds, with $31.5 emerging as a key support zone. Source: Cryptorizz via X

Technically, HYPE Hyperliquid price remains in a broader uptrend, but the recent drop from $45.88 highs to current levels has flipped short-term momentum to the downside. Additionally, price might have more space towards the downside before a proper base is established. If $31.5 doesn’t hold, eyes could shift toward $28 and even $25 as potential support zones.

HYPE, which is already showing signs of weakness, could get into a more difficult situation if it drifts lower any further. According to DeFiMoon, there are about 3.6 million HYPE worth of long positions, roughly $100 million, sitting in the liquidation zone between $30 and $33.

Over $100M in HYPE long positions risk liquidation between $30 to $33. Source: DeFiMoon via X

That’s a big stack of vulnerable leverage, and it explains why this area is getting so much attention. If price moves into that range, it could trigger a wave of forced selling, accelerating downside pressure in a short window.

HYPE Hyperliquid price is now sitting just above a major demand zone, with price currently hovering around $34. Trader Tim’s chart marks the $30.5 to $28.7 region as the primary level of interest. This was the prior base where price consolidated before launching higher in late May.

HYPE hovers above key demand zone with $30.5–$28.7 marked as a potential bounce area. Source: Trader Tim via X

Trader Tim believes, if the Hyperliquid price dips into this blue box, it’s the kind of area where larger bids tend to sit and also a potential area of reversal.

This matches the $30 to $33 liquidation cluster flagged earlier by DeFiMoon, meaning any move into that range could have a positive reaction. Until then, upside remains capped under $37.25, which is now the nearest resistance.

Despite the recent technical breakdown, the Hyperliquid community isn’t exactly panicking. There’s growing confidence that this dip could turn into an opportunity. Price is now drifting toward a key demand zone, and with a large liquidation cluster sitting just below, the setup looks primed for a fall lower.

For bulls to regain control, $37.25 must be reclaimed first, and a clean move above $40 would fully reset the bullish trend structure. HYPE’s fundamentals remain strong, its deflationary model continues to stand out in a market full of inflationary tokens, but short-term momentum still needs to flip. Until then, expect volatility to stay high.