$HYPE at $40: Can Bulls Hold Key Support?

$HYPE at a Pivotal Market Crossroads

Hyperliquid’s native token, $HYPE, is at a pivotal juncture, according to a recent analysis by crypto influencer Lark Davis. The token, currently trading at $46.205 with a 2.66% dip, has seen its previous support level transform into resistance, a shift highlighted by the 20‑day and 50‑day Exponential Moving Averages (EMA) at $48.168 and $47.470, respectively. This technical reversal suggests a challenging period ahead, with the price dipping below these key indicators. Davis warns that bulls must step up to defend the $40 level to prevent a deeper correction, a sentiment echoed by the market’s recent consolidation near the 0.386 Fibonacci retracement.

Breakout or Breakdown Ahead for $HYPE

The chart reveals a broader uptrend, with a rising trendline supporting the price since early 2025. However, the current pullback tests investor conviction, especially as $HYPE hovers near critical support zones. A clean breakout above the EMAs could signal a bullish resurgence, potentially pushing the price toward higher resistance levels like $50 or beyond.

Conversely, failure to hold $40 might trigger a sharper decline, aligning with bearish sentiments if market momentum wanes. Community reactions on X range from cautious optimism—citing potential upside from DEX and NFT activity—to bold predictions of $100 in a bull run, though these remain speculative.

$HYPE’s Performance Could Shape Uptober Trend

For traders, this moment offers a strategic opportunity. Watching for a decisive EMA breakout with strong volume could be the green light for longs, while setting stop‑losses below $40 is prudent to mitigate risk. As October, often dubbed “Uptober,” unfolds, $HYPE’s performance could set the tone for altcoin trends. Stay tuned as this battle between bulls and bears unfolds.