Date: Thu, Sept 25, 2025 | 08:50 AM GMT
The cryptocurrency market continues its sharp retracement, with Bitcoin (BTC) and Ethereum (ETH) both sliding into weekly losses. ETH, in particular, dropped by over 12% to the $4,000 mark. Unsurprisingly, major altcoins are also feeling the heat, including the decentralized exchange token Hyperliquid (HYPE).
Over the past week, HYPE has taken a heavy 26% hit, but more importantly, the latest chart structure shows it is trading at a pivotal level — one that could decide whether the next move is a bounce or a deeper breakdown.
Source: Coinmarketcap
Broadening Wedge Setup in Play
On the daily chart, HYPE is forming a classic ascending broadening wedge, a structure known for its mix of volatility and investor uncertainty. While this pattern often carries bearish implications, it also allows for sharp rebounds before any breakdown occurs.
The latest drop came after HYPE was rejected from the wedge’s upper boundary near $59.45 on September 18, triggering a steep correction toward the wedge’s lower boundary. Currently, the token is testing this critical trendline support around $42.0, which sits just below the 100-day moving average ($44.29).
Hyperliquid (HYPE) Daily Chart/Coinsprobe (Source: Tradingview)
This level is crucial because it has served as dynamic support throughout HYPE’s uptrend since June, making it the key battleground for bulls looking to defend the structure.
What Next for HYPE?
If buyers manage to hold the $42 support and reclaim levels above the 100-day moving average, a recovery toward $51 (the wedge’s mid-range resistance) appears likely. Beyond that, another attempt at the upper wedge boundary near $67+ could come into play, keeping hopes for a fresh all-time high alive.
However, failure to hold above the lower boundary could confirm the wedge’s bearish outlook. In that case, HYPE risks sliding back toward the $28–26 support zone, a level that would represent a far deeper correction and shift overall sentiment bearish.
For now, all eyes remain on the $42 support, as the outcome at this level will determine whether HYPE stages a rebound or enters a prolonged downturn.
