The cryptocurrency market has once again entered a period of volatility, and Hyperliquid (HYPE) is no exception. Over the past 24 hours, HYPE’s price has dropped sharply by 18%, extending its correction phase and raising concerns among traders and investors. This significant decline follows the breakdown of key technical support levels, with bearish indicators dominating both short- and medium-term charts.
While the broader crypto market has seen pullbacks due to macroeconomic pressures, HYPE’s drop appears to be exacerbated by internal selling momentum and weakening bullish sentiment. At current levels, the asset is trading far below its all-time high—now down 53% from its peak—prompting questions about whether this is a buying opportunity or a sign of deeper downside risk.
Technical Breakdown: Key Support Levels Shattered
One of the most telling signs of HYPE’s weakening structure is the failure to hold above the $20 support level. As previously noted in technical analyses, this level was critical for maintaining bullish momentum. Once broken, it transformed from support into resistance—a classic bearish signal.
Despite brief attempts to reclaim momentum, buyers failed to push the price back above $20. A secondary support at **$18.55 also collapsed under sustained selling pressure, accelerating the decline to $16.55**.
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This breakdown suggests that short-term confidence in the asset has eroded. Traders who had positioned for a rebound may now be exiting positions, further fueling downward momentum.
RSI Signals Oversold Conditions—But No Immediate Rebound in Sight
On the 4-hour chart, the Relative Strength Index (RSI) has dipped below 30.00, indicating that HYPE is now technically oversold. In typical market cycles, an oversold condition often precedes a corrective bounce, as selling exhaustion sets in.
However, oversold does not automatically mean “bottomed.” In strong downtrends, assets can remain oversold for extended periods—especially when bearish sentiment dominates and institutional or whale-level selling continues.
In HYPE’s case, despite the oversold reading, there are few signs of accumulation or bullish order book depth. This increases the likelihood that price stabilization may take longer than expected.
Bearish Indicators Strengthen Across Timeframes
Beyond the RSI, other technical tools reinforce the bearish outlook for Hyperliquid.
Bull Bear Power Shows Sellers in Control
The Bull Bear Power (BBP) indicator on the 4-hour chart currently sits at -4.34, confirming that sellers have firm control over price action. When BBP is negative, it reflects weak buying pressure and strong dominance by bears.
For a meaningful reversal to occur, this indicator would need to turn positive and sustain above zero—something that has not happened since the initial breakdown. Until then, sideways or downward movement remains the most probable path.
Daily Chart Confirms Downtrend with MACD and EMA Crossover
Zooming out to the daily timeframe reveals an equally discouraging picture:
- The MACD (Moving Average Convergence Divergence) has entered negative territory, signaling growing bearish momentum.
- The 12-day EMA (blue line) has crossed below the 50-day EMA (orange line)—a classic “death cross” pattern often associated with prolonged downtrends.
These signals suggest that even if a short-term bounce occurs, the overarching trend remains downward unless strong bullish volume returns.
Potential Price Targets: Downside Risks vs. Recovery Scenarios
Given the current technical landscape, two distinct paths lie ahead for HYPE depending on whether bears maintain control or bulls stage a comeback.
Bear Case: Slide Toward $10 Remains Possible
With HYPE now trading below the 0.236 Fibonacci retracement level, the next major support zone lies around $15.80. A break below this level could open the door to much deeper losses—particularly if broader market conditions fail to stabilize.
Historical volatility patterns and volume analysis suggest that a drop toward $10 is not out of the question if selling pressure intensifies. That would represent an additional ~40% decline from current levels.
Such a move would likely be driven by:
- Continued macroeconomic uncertainty
- Reduced exchange inflows or increased outflows
- Negative sentiment in the broader altcoin sector
Bull Case: Recovery Hinges on Regaining $19.80
For bulls to regain control, HYPE must first reclaim and hold above $19.80, which aligns with the 0.236 Fib level. This would signal renewed buying interest and potentially trigger short-covering activity.
A confirmed breakout above this zone could propel HYPE toward:
- $22.29 (next resistance)
- And eventually test $26.31 if momentum accelerates
Such a scenario would require strong volume support and positive catalysts—such as protocol upgrades, exchange listings, or favorable market news.
Frequently Asked Questions (FAQ)
Why did HYPE drop 18% in 24 hours?
The sharp decline was triggered by the breakdown of key support at $20, combined with broader market weakness and increased sell-off pressure. Technical indicators suggest panic selling may have contributed to the speed of the drop.
Is HYPE oversold? Does that mean it will rebound soon?
Yes, HYPE is technically oversold with an RSI below 30. However, oversold conditions don’t guarantee an immediate rebound—especially in strong downtrends where bearish momentum persists.
What are the next key support levels for HYPE?
Immediate support lies at $15.80**. If broken, the next major target is **$10, representing significant downside risk.
Can HYPE recover if it breaks above $19.80?
Yes. A sustained move above $19.80—the 0.236 Fib level—could signal a shift in momentum and open room for a rally toward $22.29 or higher.
What technical indicators are most important for watching HYPE’s trend?
Key indicators include:
- RSI (momentum and overbought/oversold levels)
- MACD (trend strength and direction)
- Bull Bear Power (buyer vs. seller dominance)
- EMA crossovers (longer-term trend confirmation)
Should I buy HYPE now or wait for a bottom?
This depends on your risk tolerance and strategy. While HYPE is oversold, entering too early during a strong downtrend carries risk. Waiting for confirmation—such as a bullish MACD reversal or breakout above $19.80—may offer safer entry points.
Final Thoughts: Caution Advised Amid Bearish Pressure
Hyperliquid (HYPE) is navigating one of its most challenging phases since launch. With technical indicators aligned to the downside and investor sentiment deteriorating, further losses cannot be ruled out.
While oversold conditions may attract contrarian buyers, sustainable recovery will require more than just short-term bounces—it demands structural strength, volume-backed breakouts, and improved market confidence.
Until those elements return, caution remains the best approach for traders evaluating HYPE’s next move.