Hyperliquid (HYPE) Price Prediction: Triangle Compression and Bull Flag Hint at $50 Reversal

Following a quiet stretch of underperformance, Hyperliquid is entering a potentially pivotal phase. While majors like Bitcoin, Ethereum, and XRP are beginning to reclaim momentum, HYPE has spent the past few sessions lagging behind, but the chart is starting to tell a different story.

While Bitcoin, Ethereum, and even XRP show signs of reclaiming short-term momentum, Hyperliquid continues to post unusually slow returns. As shown in the 24-hour performance chart shared by Henrik, HYPE is trailing well below its peers, dipping more than -3.5% at one point while majors like XRP surged over 1.9%.

Hyperliquid lags behind top majors, posting -3.5% in 24H while XRP leads with a 1.9% gain. Source: Henrik via X

From a technical lens, this kind of underperformance often stems from correction phases. Unless there’s a clear pickup in buying interest or a structural breakout, this relative weakness could persist into the coming sessions.

Similar to Hyperliquid HYPE’s slow price action, the buyback activity has remained slow over the weekend as well. As shown in the chart shared by Tobias Reisner, nearly $2 million in HYPE tokens were repurchased on a relatively quiet Saturday. The average buyback price hovered around $44.10, which may indicate an area of soft support in the short term. If this trend continues, it could provide the foundation for a recovery once broader momentum returns.

Hyperliquid buybacks totaled nearly $2M over the weekend, with average price support forming near $44.10. Source: Tobias Reisner via X

After a stretch of underwhelming performance, Hyperliquid might finally be gearing up for a decisive move. As illustrated in LinusCaldwell’s chart, price action is now trading tightly within a converging triangle pattern, with both the descending resistance and ascending base compressing into a breakout zone. The current level around $43.90 is hugging the 50-day EMA, and any clean push above the trendline could open up a short-term rally window towards the $48 to $50 range.

HYPE coils within a converging triangle near the 50-day EMA, with RSI recovery hinting at a breakout towards $50. Source: LinusCaldwell via X

What adds weight to this potential breakout is the RSI trending upward from oversold territory, signaling a shift in momentum. Volume remains moderate, but with recent buyback support and consolidation holding firm, the structure is beginning to look more constructive.

Even as HYPE price action remains muted on the charts, its underlying infrastructure is quietly expanding. According to new data shared by n01man, Hyperliquid has now captured 22.8% of the total derivatives market share, trailing only Binance (45%) and Bybit (32.2%). This marks a new all-time high for the protocol and places it firmly among the top three in terms of global volume distribution.

Hyperliquid hits a new all-time high with 22.8% market share, now ranking third behind Binance and Bybit. Source: n01man via X

While the token may be lagging, the protocol’s backend growth tells a different story, one of increasing institutional trust and trader adoption. This divergence between platform strength and token movement often precedes major catch-up rallies, especially when technicals begin to align.

Hyperliquid may be setting the stage for a reversal. The 4H chart shared by HYPEconomist reveals a textbook descending channel, an early sign of a potential bull flag in formation. Price is currently consolidating between two parallel trendlines, with the lower support line holding firm around $40 and resistance capping out near $45. This kind of setup often indicates healthy cooling before continuation.

Hyperliquid forms a textbook bull flag between $40–$45, hinting at a possible breakout toward $50. Source: HYPEconomist via X

If this descending channel resolves to the upside, it could be the breakout signal bulls have been waiting for. A move past the upper boundary of the flag could open a path toward $48 and eventually test the $50 zone again. This view goes with LinusCaldwell’s outlook as well.

While short-term price action still feels sluggish, the bigger picture around Hyperliquid is quietly shifting. Structurally, the bull flag pattern combined with a tightening triangle and strong protocol fundamentals paints a far more constructive outlook than price alone suggests. The market may not be rewarding it yet, but setups like these, especially when paired with rising RSI and consistent buybacks, tend to front-run major reversals when momentum finally returns.