Hyperliquid Price (HYPE) In Trouble? Flagging Pattern Signals Drop to $19

Hyperliquid (HYPE) formed a bear flag near $25; analysts warn of a possible drop of $19–$17 amid weak momentum and a bearish structure.

Hyperliquid (HYPE) is showing signs of weakness on multiple occasions, as traders point to low price formation and fading momentum. The asset is trading around $25 as of press time, with a market capitalization of $6 billion, placing it at #31 in the crypto market. HYPE has seen a decline of almost 3% in the last 24 hours, despite a small gain of 2% last week.

The bear flag pattern suggests further bearishness

Crypto analyst Ali Martinez shared a 12-hour chart showing what appears to be a bearish flag formation. This pattern usually follows a major decline and is characterized by a short ascending channel before a possible continuation down. The stock is inside this channel, just below the key resistance level of $27.

Hyperliquid $HYPE form a flag that could result in a move to $19. pic.twitter.com/ujBDmvzrWz

– Ali Charts (@alicharts) January 8, 2026

A confirmed break below the lower border of the flag will support a move towards the $19 area. This target is based on the projected movement from the previous decline.

Furthermore, according to market watcher Hyper_Up, the broader trend remains bearish. They said, “In a worst-case scenario, the price could drop to $17 in the region.” They also pointed to an internal currency near $24 that could slow the fall, before adding,

“A drastic change from there should not be expected.”

Meanwhile, the currency area around $28 was cleared recently, creating a new low. This break ensured that traders remained in control and that reversals did not occur without the return of broader market forces.

Indicators Show Selling Pressure

On the 1-hour chart, the momentum remains negative. The 9-period EMA is below the 21-period EMA, and the price is trading below both. For buyers to regain control, HYPE will need to move back above the $27 area.

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The MACD also remains in bearish territory. The MACD line is below the signal line, and the histogram shows continued negative pressure. There are early signs of momentum slowing, but no crossover has formed.

Separately, Grayscale has filed statutory trusts for both BNB and HYPE with the Delaware Division of Corporations. This is a required step before a company can file ETFs with US regulators.