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HYPE Token Price Action Explained: Bullish Opportunities vs Bearish Risks
Hyperliquid (HYPE) has been trading within a $36 to $50 range during Q3, providing notable swing trading opportunities. Recently, short sellers have gained around 16% after the price hit resistance near $50 in mid-August and pulled back.
Bears Eye More Downside Potential
If the current retracement continues, bears could see additional gains if HYPE falls back toward the lower end of the range around $36. Technical indicators like RSI and OBV on the 4-hour chart show weakness, supporting bearish momentum. The price dipping below the mid-range level of $42 is a key signal — more daily closes under $42 could strengthen the case for shorts.
A further drop to $36 might present another short-selling opportunity, especially if Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium signals a hawkish stance.
Key Price Levels to Watch
Liquidity zones exist around $40 and $37.3 on the downside, while $45 and $50 act as resistance levels. A sweep of the lower liquidity zones would reinforce bearish bets, but reclaiming and holding above the mid-range could invalidate the short-term bearish view.
Is HYPE Undervalued for Long-Term Buyers?
From a longer-term perspective, HYPE may be undervalued. The SWPE (Supply Weighted Profit to Earnings) ratio, which compares market cap to protocol earnings, stands at 3.19 — indicating potential undervaluation and strong demand. These earnings also support HYPE’s buyback program.
HYPE presents mixed signals: technically, the short-term outlook favors bears if the price remains below $42. Yet, fundamentals suggest long-term buyers might find good value now. Traders should watch price action around key levels and Powell’s upcoming speech for clearer direction.
