Hyperliquid (HYPE) Defends Key Support as Market Watches the $34–$36 Zone

Hyperliquid (HYPE) has returned to focus this week after stabilizing above the $30 mark, a level many traders did not expect to see defended so quickly after the recent drawdown. Market commentator Erick Crypto highlighted the move, pointing to renewed derivatives liquidity and fresh interest tied to growing talk of a possible Kraken listing.

On the other hand, the perpetual market flow of Bitcoin has also improved, and it appears that large traders are beginning to allocate their exposure to safe-haven assets such as gold and silver via HIP-3 strategies. Taken together, it appears that the current price action is in a critical transition phase.

Also Read: Hyperliquid (HYPE) Surges 26% as Bullish Sentiment Returns

Hyperliquid Weekly Structure Signals a Repeating Cycle

On the weekly chart, the HYPEUSDT pair is seen to be undergoing a large cycle that has been influencing the price actions since mid-2025.

The initial large peak was noticed in the price when it reached the $55 to $60 mark, and subsequently, the price was seen to undergo a large pullback, which resulted in the price reaching the support zone of $22 to $25.

The reason for this large pullback is that this zone has acted as a base for accumulation. The rebound created a second arc in the shape of a curved line, but the fact that it did not create a higher high indicated that the buying power is weakening.

The price dropped once again below the $40 to $45 resistance level, which further reinforced the theory that Hyperliquid was in a wide range rather than a trend change.

As long as Hyperliquid remained below the upper boundary, the cycle would continue to repeat itself, with buying at the lows and selling at the highs. A strong close below $22 would break this cycle and indicate further weakness.

HYPE Daily Chart Shows Recovery Without Reversal

Data from TradingView on January 29 reveals the daily chart for HYPE/USD is still in a larger downtrend. The market has been forming lower highs and lower lows for several months before falling into the demand zone at $20-$22.

This zone saw strong buying interest, resulting in a strong rebound, but the price is still below strong overhead supply. TrendoScope indicates pullback values at very high historical levels, which indicates that a lot of the fall is already in the books.

However, growth in the upside is still restricted, as runup values are behind and trading is ranging between $28 and $34. This is reflected in momentum indicators.

RSI is approximately 63.9, which indicates that buyers are present, but conditions are stretched for a downtrend. MACD is positive, indicating that improvement is on the cards in the short term, but the price still has to remain above the $34 to $36 region for a long-term change.

Also Read: Hyperliquid $HYPE Breaks Records with 5,000% ROI on Polymarket