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Hypeliquid (HYPE) has experienced a challenging month in the cryptocurrency market, losing nearly a third of its value over the past 30 days. Despite the sharp downturn, recent trading activity suggests that traders are not ready to give up on the token. With the price showing renewed strength in the last 24 hours, market participants are closely monitoring key support and resistance levels to determine whether a recovery phase is forming.
HYPE is currently trading at $34.72, reflecting an 8.04% price increase in the past day. Although the asset remains far below its recent monthly peak, the short-term upward movement has sparked fresh discussions among active traders who are now examining whether the market has reached a stabilization point.
A Deep Correction Followed by a Surge in Activity
The 30% correction placed pressure on bullish sentiment, but it also attracted renewed participation from traders who see opportunity in sharp pullbacks. A sizable increase in trading volume has become one of the most notable developments in the latest price movement. HYPE’s 24-hour volume climbed to $525 million, indicating heightened activity across exchanges.
Market participants appear to be looking for additional signals that the price could form a base near current levels. The recent rise in volume, paired with temporary price stabilization, has led to cautious interest rather than panic. Some traders argue that the correction may have reset an overheated market, making room for a more sustainable trend if the recovery continues.
The $29 Zone Emerges as the Most Important Support Level
Analyst Crypto Bully identified the $29 price area as a decisive support level. The market previously reacted strongly in this zone and buyers stepped in during previous declines. If the token remains above this level, analysts believe that the probability of a recovery improves significantly.
Several traders are now watching price behavior closely as HYPE approaches this level. A successful defense of $29 could set the stage for further bullish momentum. On the other hand, a failure to maintain this support may lead to a deeper drop and change overall market sentiment in the short term.
The recovery hypothesis centers not on an immediate reversal but on gradual rebuilding of structure. If buyers continue to accumulate near $29 and sustain the current demand, analysts believe that the next checkpoint lies at $37 — a resistance zone where previous rallies stalled.
Short Interest Builds, Increasing Price Pressure
Although the recent bounce has generated optimism, the market remains divided. A major trader recently opened a large short position against HYPE, adding a contrasting perspective to the price outlook.
According to blockchain data, a trader took a position worth around $67.1 million using $6.9 million in margin. The liquidation range for this short sits near the $33.50 mark. That region has now become an important area for short-term market psychology, as the token is trading above this level.
Although the trader has already been liquidated for $8.45 million in HYPE, the short position continues to stand as an aggressive bet against near-term price appreciation. This reveals two competing forces in the market: rising interest from traders acting on a recovery scenario and continued positioning from traders expecting more downside pressure.
The standoff between these groups may help determine HYPE’s directional bias in the coming days. If buying pressure remains strong enough to keep the price above $33.50, market sentiment may gradually shift toward the recovery narrative.
Sentiment Among Long-Term Holders Remains Unchanged
While short-term traders attempt to evaluate risk versus opportunity, long-term supporters of the project appear calm. According to community comments, the team behind Hyperliquid remains focused on the technology and broader roadmap rather than daily price movements.
Hyperliquid Daily shared a message encouraging the community to stay patient during the market correction. The post emphasized that the project’s fundamentals haven’t changed and argued that dips could represent an opportunity rather than a setback. “If those core reasons remain as valid as ever, then this price dip isn’t a setback, it’s a rare chance to stack more at a discount,” the update read.
Supporters believe that HYPE’s real value lies in the underlying technology rather than short-term price volatility. Hyperliquid is designed as a high-speed decentralized exchange for perpetual trading, aiming to deliver low-latency performance similar to centralized platforms while maintaining blockchain transparency.
Many holders remain confident that the token will reflect the project’s continued development over time. As a result, a portion of the community views the recent downturn as a normal correction rather than a breakdown in the long-term growth path.
Key Levels to Watch in the Coming Days
Short-term market outlook now depends primarily on whether the price continues to defend the support zone near $29. Analysts note that this level has historically attracted buying interest and may act as a reset point for the market. If this area holds, the logical next step in the recovery would be an attempt to reach the $37 region, where strong selling pressure was previously recorded.
If the price returns to $37 and breaks above the resistance zone with strong volume, the recovery narrative may gain broader traction. However, if the asset loses support above $29 and falls below this threshold, traders warn of potential extended volatility. Such a breakdown could change sentiment rapidly and force many market participants to reassess their positioning.
Conclusion
HYPE remains in a delicate position after a steep monthly correction. Over the last 24 hours, the token has shown signs of short-term recovery, supported by increasing trading volume and stabilizing price behavior. Traders are not unanimous, as long-term supporters remain positive while some large short positions are still active, creating an uncertain short-term landscape.
What happens next will likely depend on how the market reacts at the $29 support level and whether buying momentum can push the price toward — and potentially beyond — the $37 resistance zone. For now, both bulls and bears are active in the market, and HYPE’s price appears positioned at a crossroads that could determine the direction for the coming weeks.
