HYPE Token Correction: Key Levels to Watch in 2025

HYPE Rally Momentum and Market Drivers

HYPE capped last year with a sharp rally, and its upward trend has persisted into 2025.

Recently, the token tested an ATH of $39.93 before stopping short of $40 and eventually pulling back.

This week, the coin is down over 10% in a correction.

Arthur Hayes’ Bold $100 Price Prediction

HYPE’s momentum was fueled by several developments. BitMEX co-founder Arthur Hayes predicted the token could soar to $100, implying nearly 200% upside from current levels.

Additionally, Hyperliquid is engaging with the CFTC to enable 24/7 crypto trading and secure approval for perpetual contracts, boosting open interest in the token significantly.

Technical Analysis: Fibonacci Support Levels

Technically, HYPE tested the upper bound of an upward-sloping regression channel, which was followed by a pullback and then a correction.

The first target was $32.71, aligning with the 23.6% Fibonacci retracement level.

The price action is now turning upward, tracking the trend. If the bears break below $32.71, the token could slide to the $28.24-28.43 range, which represents stronger horizontal support tied to the 38.2% Fibonacci retracement and based on previous highs.

Moving forward, a steeper decline to $24.63, the 50% Fibonacci level, looks likely, while the bullish trend would still hold.

Trading Outlook: Bullish Trend Remains Intact

This technical analysis suggests betting against the trend with short positions is risky.

Traders opening positions are advised to scale down sizes and set tight stop-losses.

If a correction leads to a rebound, flipping to long positions to ride the prevailing trend could be recommendable. Without a correction, sticking with the bullish trend makes sense.