Hyperliquid (HYPE) Stages Comeback: Key Support Holds Firm After $22 Plunge

Hyperliquid (HYPE) just pulled off a classic crypto floor routine—sticking the landing after a nasty $22 fall. The digital asset's recovery zone held, proving that sometimes the most boring lines on a chart are the ones that matter.

The Bounce That Mattered

Traders watched HYPE's price action like a hawk. That $22 drop wasn't a gentle nudge—it was a shove. But the market didn't panic-sell into oblivion. Instead, buyers stepped in at a critical technical level, turning potential carnage into a textbook rebound. It's the kind of move that separates coordinated accumulation from a mere dead-cat bounce.

Why Support Levels Aren't Just Lines

In crypto, 'key recovery zones' are more than trader jargon. They're the price points where sentiment shifts, where leveraged longs get liquidated or, in this case, where new positions get built. HYPE finding its footing here signals that a chunk of the market still sees value—or at least, a short-term trading opportunity. It’s the financial equivalent of catching a falling knife, but with slightly better odds.

The rebound injects a dose of cautious optimism. It suggests the sell-off was a liquidity grab, not a fundamental breakdown. For now, the narrative has shifted from 'how low can it go?' to 'how high can it bounce?'—a classic pivot that keeps speculators glued to their screens. Just remember, in a market fueled by leverage and narratives, today's sturdy floor can be tomorrow's shattered ceiling. After all, what's a 22-dollar drop between friends when the whole game is priced in hope?

Hyperliquid (HYPE) Double Top Breakdown Confirmed

On December 10, Popular crypto analyst CryptoPulse shared a chart outlook on HYPE, showing how it had formed a Double-Top pattern. The analyst said the pattern would be confirmed when the price closes below the neckline on multiple four-hour periods. Shortly after, the pattern played out as predicted, with HYPE falling below and dipping towards the $22 level.

Later confirmation by CryptoPulse revealed a successful outcome for the downward trade as well, as the short position was closed close to the local low. The analyst has made a whopping 20% profit with this trade as well.

HYPE Bounces From Long-Term Support

Meanwhile, another analyst, GainMuse,  presented a broader outlook on the structure of the HYPE market. As GainMuse explained, the token has recently rebounded from the bottom line of a long-term descending channel after spending weeks in a tight range. Such a reaction indicates that buyers are entering at an important spot, perhaps preparing the ground for an uptrend.

GainMuse further explained that if this trend of defending the support zone continues, HYPE might try to have a recovery rally towards the descending resistance of the channel. Although confirmation is still pending, the situation at present is at a critical level for HYPE.