Hyperliquid (HYPE) Shows Early Signs of a Second Bullish Elliott Wave

Hyperliquid's HYPE token appears to be entering a new growth phase after enduring an extended period of decline. Having bounced back strongly from the $25–$28 support zone, HYPE is now trading around $37, carving out a pattern of higher lows and higher highs — a textbook signal that market structure has shifted from bearish to bullish.

One of the most telling developments is how HYPE has reclaimed key moving averages. Both the 26 EMA and 50 EMA — previously acting as overhead resistance — have flipped into dynamic support levels, with price now consolidating comfortably above them. Meanwhile, the longer-term trend indicator is beginning to flatten, confirming that downward momentum has largely been exhausted.

From an Elliott Wave perspective, this price behavior looks consistent with the early stages of a second expansion wave. Rather than surging in a straight line, HYPE is doing something arguably more constructive — consolidating in a tight range while respecting established support zones. This kind of controlled pause after an initial impulsive rally is often a prerequisite for the next meaningful leg higher.

Volume during this consolidation phase has remained steady, though not explosive. Crucially, there are no signs of significant liquidity withdrawal, which is often what kills continuation setups before they fully develop. Instead, the market appears to be absorbing the prior rally in a healthy, measured way.

Going forward, the $34–$35 range is the key support level to watch. As long as HYPE holds above this zone, the bullish case remains intact. A confirmed breakout above the $40–$42 local high would likely signal trend continuation, opening the door to higher resistance targets and validating the broader bullish Elliott Wave structure currently taking shape.