Market Direction

HYPE rally stalls, bearish setup forming

Published: Jun 2, 2025

HYPE is forming a bearish flag below $31, with $28 as key support. A deeper drop to $24.70—or lower—is likely unless bulls reclaim momentum soon.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

HYPE has pulled back from the all-time highs of $40.00. $40.00 remains the major horizontal resistance for the price going forward.
Price has now found some local support at the prior highs of $31.00.
Price is now forming a bear flag that would have a breakdown target of $28.00.
Should price break below $28.00, although we think it can hold there initially, then $24.70 would be the next major horizontal support.
The RSI has pulled back from overbought territory, however, its moving average is still overbought, which would suggest that this needs more time to come down/reset.

A screenshot of a computer screen AI-generated content may be incorrect.

Next Support: $28.00
Next Resistance: $40.00
Direction: Bearish
Upside Target: $40.00
Downside Target: $23.70

Cryptonary's take

HYPE has had a phenomenal run, however, we have now seen a small pullback, and we do expect this to be the start of a new downtrend over the medium term for HYPE. Our expectation is that HYPE will break down from its bear flag pattern and the price will revisit $28.00 in the short term. Ideally, we'd like to see HYPE hold that $28.00 support and build a floor for the price there. We will reassess this, assuming we're right and price revisits $28.00 in the short term.

In terms of positioning, we're remaining patient, and we're not looking to buy this price pullback just yet. We'll reassess upon a retest of $28.00, although it's likely that our buying zone will be sub $23.