Is a 50% Plunge Coming for Hyperliquid’s HYPE? The Bear Case Explained

A painful decline or a renewed rally: what’s next for HYPE?

HYPE – the native cryptocurrency of the decentralized exchange Hyperliquid – was among the crypto sensations this summer, reaching an all-time high price of almost $60 in mid-September.

However, its valuation has retraced substantially since that peak, and one popular analyst believes the downfall might be just starting.

Major Crash on the Horizon?

The popular X user, Ali Martinez, analyzed the price performance of HYPE and argued that its chart could be forming a classic head-and-shoulders pattern. He said a drop to $36 will confirm that scenario, which in turn may lead to a collapse to as low as $20.

Hyperliquid $HYPE could be forming a head and shoulders pattern. If confirmed, it projects a move to $20. pic.twitter.com/3lKhj8ppqt

— Ali (@ali_charts) November 3, 2025

As of this writing, HYPE trades at approximately $41, meaning that such a plunge would represent a 50% decline. Another renowned market observer who is rather bearish on the asset is Altcoin Sherpa. The X user told their over 250,000 followers that HYPE’s performance looks “poor” and revealed that they are cutting their position after seeing the latest downtrend.

“Looks like some twap out, slow efficient selling. Not sure what’s going on, but going to just wait for more clarity,” they stated on the social media platform.

The Bullish Predictions

Numerous other analysts see the current price level as an ideal buying opportunity. X user Ahmed said they will start accumulating HYPE tokens again, while Crypto Tony promised to do the same if the price dips to $38.40.

Corgil is also optimistic, claiming that the cryptocurrency is just “one announcement away” from reaching a new all-time high before the major token unlock in November. Many industry participants have warned that hundreds of millions of dollars’ worth of HYPE will be released towards the end of the month, which could increase the supply and have a negative impact on the price.

You may also like:

“Everyone with an inch of a brain knows Hyperliquid team will re-lock or come up with something else that would challenge ‘typical’ crypto-project playbook,” Corgil assumed.

Meanwhile, a mysterious crypto trader who usually bets serious sums and has a 100% win rate recently opened a 10x long position on HYPE, sparking speculation that they may know something we don’t.