Current Price Action and Market Sentiment

Hyperliquid (HYPE) has experienced a period of volatility, but recent trends suggest a potential recovery. After falling below $35 earlier this month, HYPE price is showing early signs of strength, climbing back towards the $39–$40 zone. This renewed optimism is fueled by significant upcoming developments from the Hyperliquid team, including a planned Nasdaq listing via a SPAC merger and a substantial $305 million treasury expansion. This expansion could involve the company purchasing more HYPE tokens directly from the market. The convergence of fundamental momentum and technical recovery positions HYPE for a critical fourth quarter for its holders, raising the question of whether the current rebound can be sustained or if it represents a temporary relief before further declines.

Technical Analysis: What the HYPE Chart Indicates

Analysis of the 4-hour chart reveals that HYPE price action has been consolidating following a sharp decline from the mid-$50 range. The recent bounce from the approximately $32 area marks the first significant higher low observed in weeks, suggesting a potential reversal of short-term momentum. The $39 level is currently acting as a critical pivot point. If buyers can maintain the HYPE price above this level, the next area of resistance is anticipated near $44–$46, the zone where the previous breakdown occurred. Trading volume, while currently modest, is gradually increasing, indicating renewed investor interest after weeks of selling pressure. Furthermore, the chart exhibits a developing mild bullish divergence between price and momentum indicators, which often precedes more substantial recovery movements. However, the $30 level remains a crucial support; a breach of this level would likely lead to a retest of the September lows.

Key Market Indicators

Open interest has stabilized around 97 million, indicating that traders are beginning to re-establish positions without the aggressive leverage that typically drives sharp volatility. Net long and short positions suggest a balanced market sentiment, with bears holding a slight edge but showing signs of weakening. The 4-hour chart MACD has crossed into positive territory, rising above its signal line for the first time since early October. Such crossovers can often signal the beginning of a short-term uptrend, particularly when accompanied by increasing volume. Despite these positive technical signals, broader market sentiment remains mixed. While the treasury's plan to accumulate more tokens is inherently bullish, the anticipated token unlocks in late 2025 continue to pose a potential concern for long-term confidence.

Q4 Outlook for HYPE Price

In the near term, HYPE appears positioned for a technical rebound, provided it can maintain its footing above $35. If bulls can secure this zone and successfully reclaim $44, momentum could accelerate rapidly towards $50, a significant psychological barrier that has historically served as both support and resistance. Market participants will closely monitor whether Hyperliquid Strategies' buyback activities gain substantial traction in the coming weeks. Consistent corporate demand could stabilize price action and attract new investors in anticipation of the Nasdaq debut. Conversely, without a strong increase in trading volume or significant ecosystem growth, HYPE price might remain confined within a $30–$45 consolidation range for much of Q4. Currently, market sentiment is cautiously optimistic, suggesting a phase of quiet accumulation before the next major price movement.