Key Insights
- Hyperliquid (HYPE) has dropped below the $40 support level and could track the general crypto market’s downturn.
- Bears are in control and are pushing the price into a short-term downtrend.
- The following support zones are $37 and $32, with major resistance at $43.
Hyperliquid price is under pressure after slipping below the $40 mark. So far, HYPE, the native token of Hyperliquid’s decentralised exchange, has enjoyed a strong run throughout the year. But now, traders are asking:
How low can it go? Investors are now eyeing the $37 and $32 levels as the bearish trend strengthens. There, the token might find relief and take off. Until then, though, the outlook is bleak.
Hyperliquid Price Faces Resistance at $40
The $40 level once served as a firm support for the Hyperliquid price. It has flipped into resistance and sets the tone for a bearish outlook over the short term. According to the charts, sellers are gaining control. With this, HYPE is now showing multiple daily closes in the red this past week.
Market analysts initially pointed out the $37 price level as the most critical zone for the cryptocurrency. Prices are now hovering just around this area.
If the bears eventually win again, they could cause a price dip towards anywhere between $32 and $31. According to insights from market analyst Ali Martinez, this is a fundamental price level for the cryptocurrency. If HYPE reaches this point, it may attract buyers again.
However, that is a very big “if”, considering the ongoing marketwide downturn. If the bulls step in at this $31 price level, the Hyperliquid price could rebound towards new highs.
A Major Bearish Signal
More on the downside pressure, the 3-day Moving Average Convergence Divergence (MACD) indicator recently showed a bearish crossover. This is a technical signal that tends to come before deeper corrections.
It also does not help the HYPE case. The ongoing downturn was caused by a breakdown of the ascending channel shown above. HYPE will likely reverse for a retest of the channel’s support around $40.
Suppose the cryptocurrency cannot reenter the channel and confirm the downturn as a false breakdown. In that case, Analysts now believe that the pullback of the Hyperliquid price could last for several weeks, or even longer..
So far, buyers have remained quiet and have allowed the bears to dictate the pace of the market. If the $37 support fails to hold, $32 becomes a real possibility.
Support and Resistance Levels to Watch for the Hyperliquid Price
The Fibonacci retracement tool has a few insights for market watchers. It is for those looking for the best support and resistance levels to watch. As of now, traders should pay attention to the price levels between $6 and $32.
The central support zones, as illustrated earlier, include $37 and $32. On the other hand, the resistance zones include $40, $43, and $46.1.
If HYPE rebounds and pushes above $46.1, a move to $50 is possible. But before that happens, it must break back above its 20-day simple moving average (SMA), currently around $44.39.
If bulls fail to reclaim these levels quickly, the market may interpret the recent breakdown as a confirmation. The bears will then have all the leeway they need to cause a full-blown crash between $29, $24.48, and $17.
Bear Trap or Deeper Correction?
There’s still a chance this downtrend could be a bear trap. A quick bounce back into the ascending channel. Above the 20-day SMA could trigger a short-term rally toward $48 or even $49.87.
However, unless buyers return with force, this scenario is improbable. This is because the trend favors more downside as long as the Hyperrliqyuid price continues trading below the channel.
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