Hyperliquid ( HYPE ) price tests key support level, Bull vs Bear Battle intensifies: Arthur Hayes dumping leaves the market, emerging competitor ASTER rises strongly.

The Hyperliquid (HYPE) Token is testing a key support level after facing market changes. Following the dumping of the token by renowned analyst Arthur Hayes and the strong rise of emerging competitor ASTER, which is eroding market share, HYPE's short-term price structure has turned bearish. However, some analysts believe that the long-term structure of the token remains bullish, and the current decline may just be a phase of re-accumulation rather than a trend reversal. The market is closely following whether HYPE can hold its mid-term support level to determine its future direction.

Market Dynamics: Arthur Hayes Exits and Emerging Competitors Rise

In the recent market fluctuations, Hyperliquid is testing a key support level, and market participants are closely following whether the token will rebound or face deeper pressure.

Despite the exit of well-known analyst Arthur Hayes and the increasing competitive pressure from ASTER, Hyperliquid has managed to hold near key demand levels, indicating that buyers are not yet ready to give up. Hayes has officially exited his HYPE position, selling all 96,628 Tokens. This exit has brought him a profit of approximately $823,000, with a return of 19.2%, far lower than the 126-fold rise he predicted during his speech at the WebX summit in August. This move reflects a cautious stance, indicating that Hayes prefers to lock in profits rather than continue holding amid ongoing volatility.

For the market, his exit sent out mixed signals. Although the 20% gain in just one month highlighted the strong recent performance of HYPE, Hayes's failure to stick to his original prediction may raise caution among traders.

Hyperliquid's market share has also begun to be eroded by the emerging competitor ASTER. Since the launch of ASTER, Hyperliquid's market capitalization has shrunk by more than $2 billion, indicating that investor attention may be shifting towards the newcomers. In stark contrast, ASTER is showing strong bullish momentum, while HYPE has been falling, unable to maintain its previous peak. This sharp divergence is intensifying the discussion about a "flip," where ASTER will start to surpass HYPE in both growth and market sentiment.

The short-term structure is bearish, and the long and short positions are entering a critical stage.

Hyperliquid has slipped into a fragile technical zone after a downward break in the 4-hour price structure, with prices falling to around $51. The chart highlights a clear shift in momentum, with sellers pushing prices into the demand area. This area is currently being tested as a short-term support level, but without a decisive reversal, the broader tendency will be cautious. Crypto Pirates are closely monitoring for a confirming rebound on the 15-minute chart, which could lead to a quick recovery, but the overall outlook remains unstable. As long as the 4-hour structure remains broken, any rise may be seen as a temporary relief rather than a trend change.

Market Contrarian View: Long-term Structure Remains Bullish

Despite the recent trend showing weakness, some analysts believe the structure of HYPE is more constructive. From a broader time frame, even with a pullback in the short term, the structure of Hyperliquid remains bullish.

The key demand level around the mid $40 range continues to serve as a safety net, and so far, each dip into the support area has been accompanied by a robust recovery. Some forecasts suggest that the price may re-test previous highs before attempting a new round of rises. Analyst Osbrah supports this view, noting that the overall trend remains intact, and the current volatility appears to be part of a re-accumulation phase rather than a complete collapse of the trend. According to his charts, as long as HYPE maintains its bullish base, Hyperliquid's price forecast remains constructive.

Conclusion

The short-term weakness of Hyperliquid, particularly due to Arthur Hayes' exit and ASTER's market share takeover, has undoubtedly caught the market's attention. However, from a broader perspective, the long-term structure of the Token still leans bullish. As long as HYPE continues to hold its mid-term support level, a rebound attempt remains very likely. The next few trading days will be crucial as they will determine whether this pullback is a brief pause before rising or the beginning of a deeper crack. If the support level can hold firm and the reaccumulation phase unfolds as analysts expect, Hyperliquid's future still holds the potential for a constructive development path rather than a complete collapse.