Hyperliquid (HYPE) Struggles for Momentum but a Breakout Remains Possible

Hyperliquid (HYPE) Struggles for Momentum but a Breakout Remains Possible

Hyperliquid (HYPE) has faced persistent resistance since the start of the year, with bullish momentum failing to take hold despite occasional rallies. The token has struggled to surpass key resistance levels, leaving investors eager for a breakout.

Optimism Persists Amid Market Challenges

Despite its recent underperformance, optimism surrounding HYPE remains strong. One key factor bolstering this sentiment is the token’s positive funding rate, which indicates that traders are still willing to hold long positions in anticipation of a recovery. This sustained confidence suggests that the market believes in HYPE’s potential for an upward move.

Additionally, HYPE’s negative correlation with Bitcoin has added an intriguing layer of complexity to its market dynamics. While Bitcoin has been battling to maintain support above $100,000, its broader bullish outlook hasn’t translated into gains for HYPE. With the correlation between the two assets weakening, HYPE’s price movements are becoming more independent. However, this also means the token could be more vulnerable to corrections if market sentiment weakens further.

Can HYPE Break Through Resistance?

Since early 2025, HYPE has been consolidating within a narrow range of $19 to $27. A decisive breakout above $27 could be the catalyst for a fresh rally, with a potential surge toward $32. If the token can establish $32 as a new support level, it may have a real shot at reclaiming its all-time high (ATH) of $42, requiring a 63% increase from current levels.

On the flip side, failure to surpass $27 could result in continued sideways movement. If support at $23 is lost, HYPE might dip back to $19, reinforcing its prolonged consolidation phase. In this case, the token may require more time to build momentum before any significant price surge can take place.

While challenges remain, market optimism and traders’ confidence could provide the support needed for a breakout—if HYPE can capitalize on the right conditions.