Hyperliquids’ rally, driven by the launch of the pre-IPO perpetual market, seems to have come to an end. As the excitement around the launch of this perpetual market fades, HYPE has lost a major support level. With prices on a downtrend, the coin could crash to $40.
HYPE loses 50-day MA
HYPE prices were on a roll when the Hyperliquid network launched the pre-IPO perpetual markets just a couple of months ago. However, that period where the price made higher highs and higher lows seems to have ended. With HYPE losing the 50-day moving average, the market has become quite bearish.
The excitement seen at the beginning of the launch of the pre-IPO perpetual market, which allows traders to gain exposure to the expected value of a private company before it officially lists on a stock exchange without owning the underlying shares, has been lost.
It was a big hit in May, as private companies do not have publicly traded shares; there is often little transparency about how the market values them before an IPO. A pre-IPO perpetual market allows buyers and sellers to express their expectations, creating a market-driven estimate of the company’s value ahead of its listing.
Unlike traditional pre-IPO investing, which is generally limited to venture capital firms, institutional investors, or accredited investors, perpetual markets allow eligible traders to speculate on a company’s valuation at any time, including weekends. But now things have changed.
“All good things must come to an end,” says analyst
A perpetual analyst who goes by the pseudonym Mercury mentioned that “all good things must come to an end,” referring to HYPE’s rally.
HYPE looks bearish technically
From a technical standpoint, the outlook has turned bearish after the price broke below the lower trendline of the symmetrical triangle, signaling that sellers have gained control following a period of consolidation. A symmetrical triangle represents a tightening range where buying and selling pressure gradually converge, and a downside breakout typically indicates that bearish momentum has prevailed. Such a breakdown often triggers additional selling as traders exit long positions and short sellers enter the market.
The bearish case is further reinforced by the loss of the 50-day moving average, a key indicator of the medium-term trend. Trading below the 50-day MA suggests that buying momentum has weakened and that the moving average, which previously acted as support, may now become a resistance level. The combination of a bearish triangle breakdown and a move below the 50-day MA increases the probability of continued downside pressure, unless buyers quickly reclaim both the moving average and the broken trendline.
HYPE prices could crash to $40-$45
However, on the higher time frames, there seems to be hope for HYPE. The analyst noted that the mid-term short entry at $72 has already been triggered, confirming the bearish setup and shifting focus toward lower price targets. The first downside objective lies in the $40–45 region, where the asset could find temporary support as buyers attempt to slow the decline.
However, the analyst also believes the market may experience one final impulsive rally before the broader correction fully unfolds. If buying momentum returns, the price could climb toward the $115–119 resistance zone, where sellers are expected to regain control.
Following that potential relief rally, the analyst anticipates a much deeper correction, with the price eventually falling into the $18–21 range. This zone is viewed as the primary accumulation area, where long-term investors could begin building positions ahead of the next major bull market cycle, assuming the broader market structure remains intact.
