Hyperliquid (HYPE) Price Breakdown Deepens as Traders Brace for a Drop Toward $24

Hyperliquid’s HYPE token is facing renewed selling pressure this week as traders brace for a deeper breakdown that could push the price toward the 24 dollar range. After a strong multi week rally that pushed HYPE into social media stardom, momentum has cooled significantly, leaving the token vulnerable to sharper corrections if broader market sentiment weakens further.

The current downturn began after several large holders reduced positions, triggering a wave of short term panic among retail traders. Market analysts note that HYPE’s rapid rise also created an overheated structure, making a sizeable pullback almost inevitable. As liquidity thins and volatility increases, many traders are shifting into defensive positions while monitoring key support zones.

Charts indicate that HYPE has already broken through its near term support levels, with the next major area of interest forming around the 24 to 25 dollar band. This range is now the primary target for traders watching the correction unfold. If the price stabilises there, it could set up a period of consolidation before any potential recovery attempt.

Sentiment on social platforms has also cooled. HYPE previously benefited from non stop viral momentum, but engagement has slowed as new meme tokens capture attention. In the meme coin economy, community activity plays a critical role in sustaining price direction. With the spotlight shifting elsewhere, traders say the token’s momentum cycle is entering a more uncertain phase.

Despite the short term weakness, some investors argue that HYPE’s long term outlook remains tied to community strength rather than pure technicals. They point to previous meme tokens that experienced deep pullbacks before staging significant rebounds once social energy returned. However, others warn that relying on social hype alone leaves the token highly exposed to sentiment driven swings.

For now, traders are watching liquidity patterns closely. If sell volume continues to climb alongside decreasing buy pressure, the drop to the mid 20s becomes increasingly likely. A failure to hold that range could expose HYPE to even lower tests, depending on broader market behaviour and macro factors influencing speculative trading.

The coming days will be critical as the meme coin market decides whether HYPE’s correction stabilises or continues into a steeper decline. With volatility returning across high risk tokens, traders are preparing for rapid swings and adjusting positions accordingly.