Technical analysis by CryptoNuclear about Symbol HYPE: Buy recommendation (1/6/2026)

HYPE/USDT on the 12-hour timeframe remains in a clear medium-term downtrend. Price continues to trade below a well-defined descending trendline, which has been respected since the peak around the 49–51 USDT area. This structure confirms that sellers are still in control. However, recent price action shows a reaction from the lower demand zone, signaling a critical decision area where the market may either reverse or continue its bearish trend. --- Pattern Explanation The dominant patterns visible on the chart include: Descending Trendline (Bearish Market Structure) Price consistently forms lower highs and lower lows, confirming a bearish trend. Compression / Potential Descending Triangle Price is compressing toward the trendline, indicating decreasing volatility and an upcoming breakout or rejection. Minor Base Formation A short-term consolidation is forming near the 22–25 USDT zone, showing early defensive buying pressure. This type of structure often precedes a strong impulsive move. --- Key Levels Resistance Zones: 27.70 USDT → Descending trendline & short-term supply 29.80 USDT → Major horizontal resistance 34.70 USDT → Previous breakdown area 41.10 USDT → Mid-range resistance 49.20 – 51.48 USDT → Major supply & previous high Support Zones: 25.00 USDT → Short-term support 22.19 USDT → Major demand zone & cycle low --- Bullish Scenario Price breaks and closes above the descending trendline (around 27.70 USDT) on the 12H timeframe. Bullish confirmation becomes stronger if supported by increasing volume. Upside targets: 29.80 USDT 34.70 USDT 41.10 USDT (extension target if momentum accelerates) A confirmed breakout would shift the structure from lower highs to higher highs, signaling a trend reversal. --- Bearish Scenario Price fails to break the trendline and gets rejected near the 27.70 USDT area. This rejection would confirm bearish trend continuation. Downside targets: 25.00 USDT 22.19 USDT (critical support) A breakdown below 22.19 USDT with strong volume could trigger a deeper sell-off. --- Conclusion HYPE/USDT is currently trading at a major decision zone. The descending trendline remains the key level that will determine the next directional move. Breakout = potential trend reversal Rejection = bearish continuation Patience and confirmation are essential before taking positions. --- #HYPEUSDT #Hyperliquid #CryptoAnalysis #TechnicalAnalysis #DescendingTrendline #TrendReversal #BearishMarket #BullishBreakout #AltcoinTrading