Hyperliquid's HYPE token is at a technically sensitive phase, with chart analysis by Ali Martinez confirming a developing rounding-top pattern that suggests a potential shift in momentum. The pattern, which began forming after HYPE's mid-year surge, shows a gradual loss of upside momentum with each rally weakening as the price bends downward along the arc.
The critical trigger for this pattern is the support line underneath it. A firm breakdown below this level would complete the formation and open the door for a deeper correction, with a potential downside target near $16, as highlighted in Ali Martinez's tweet from December 6, 2025.
Short-term charts reinforce the weakness. The 2-hour TradingView chart shows HYPE recently printed a sharp red candle that pushed the price to around $29.50, extending a multi-day downtrend. This bearish structure is marked by lower highs forming across December, consistent sell-volume spikes during declines, and a steady loss of momentum on each bounce attempt.
In contrast, other analysis notes HYPE has shown resilience at the $33.66 support level, with buyers consistently absorbing sell orders. This stabilization has led to the formation of a confirmed double bottom pattern on the 4-hour timeframe, signaling a potential bullish reversal. However, the price remains capped by a resistance zone between $35.00 and $36.07. A clean breakout above this level is required to validate a broader trend shift.
The market now faces a decisive moment. If the price continues sliding and breaks the horizontal support, it could validate the rounding-top pattern and accelerate a move toward the $20–$16 region. Conversely, if buyers defend support and reclaim the mid-arc region, the bearish pattern could lose validity, though charts currently show no clear signs of sustained reversal strength.
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