Hyperliquid (HYPE) stalls below $42: Can it reach a new all-time high this year?

Will Hyperliquid remain stuck below $42 this week?

Hyperliquid (HYPE) is navigating a transition zone, stuck below the critical $41 resistance. While whales continue to accumulate the token massively, the lack of overall demand raises the risk of a correction. Caught between leverage pressure and bearish technical signals, the market is holding its breath. Will HYPE smash through its resistance levels or suffer a severe retracement?

The crypto market is going through a phase of uncertainty, and Hyperliquid (HYPE) is no exception. Currently trading in a range between $40.50 and $41.70, the token is down approximately 3.5% to 4% over the last 24 hours. Despite notable hype surrounding spot ETF rumors and high trading volumes on its blockchain, the price is struggling to make a decisive breakthrough. 

A 2H and 3H order block has formed at this $41 to $42 level, indicating selling pressure in the short term. 

However, the high timeframe price action is currently supported by strong conviction from whales. Prominent investors have recently accumulated millions of dollars in HYPE, keeping the price afloat. Yet, this concentration of capital creates a dangerous dependency: without the arrival of broader retail demand, the momentum risks running out of steam quickly.

Can the HYPE price smash through the $44 resistance?

On the technical side, the situation for HYPE has remained the same for several weeks: it is facing two major HTF order blocks. The token is currently running into a major resistance zone located between $40 and $42. The Open Interest (OI) has climbed to $1.77 billion, indicating that a growing number of traders are using leverage. 

But if the HYPE price breaks the trendline around $42.50, then it has every chance of reaching the liquidity zone between $49 and $50 in the coming weeks, likely by the end of April. Furthermore, the 3 day RSI has not yet reached the overbought zone, indicating that an upward move of this magnitude is entirely possible. 

Conversely, a rejection at these levels could prove fatal in the short term. The 9 day and 21 day moving averages are sitting around $37, offering an initial level of support. If selling pressure intensifies, particularly due to profit taking, the price could slide toward the critical $35 support, confirming a bearish trend. In the longer term, the $27 level could serve as a springboard for a substantial bounce if Bitcoin plunges back toward $60,000.

Should you buy or wait?

The short term fate of HYPE rests on a fragile balance between whale accumulation and leverage pressure. If early investors hold their positions despite the volatility, the lack of new buyers could turn this conviction into a formidable trap. A brutal liquidation of long positions cannot be ruled out if the price drops below $37. However, if the price breaks $42.50 and holds above it, a rally to $48 to $50 is the scenario to watch.

Nevertheless, the fundamentals of Hyperliquid remain solid. With revenue generated by trading fees continuing to grow and a deflationary economic model, the token has the necessary arguments to attract institutional capital. 

But for the medium term, HYPE could remain stuck below $50 for weeks or even months, as long as Bitcoin does not break out above $80,000. A DCA strategy is therefore the preferred approach for the long term.

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