Hyperliquid (HYPE) has been experiencing significant bearish momentum in March, with the price falling below key support levels and showing little signs of an immediate recovery. The price of HYPE dropped below the $18.5 level on March 3, which had been a crucial support for the altcoin since January. This breakdown represents a shift in market sentiment, as bears have gained control over the price action, leading to a significant decline over the past two weeks. Despite attempts from whale traders to push the price upward, the market has remained under intense selling pressure.

Market Sentiment and Bearish Momentum

Since mid-February, HYPE’s market structure has been predominantly bearish, especially after the asset lost the $22.2 level, which had previously acted as support. After falling below the $18.5 mark, the token’s decline intensified, indicating a shift in market sentiment. Throughout March, the token has struggled to recover, and the continued bearish pressure has kept the price subdued.

A key indicator of the ongoing bearish sentiment is the On-Balance Volume (OBV) chart. The OBV has been in a freefall, reflecting high selling volume and confirming that the current market participants are more inclined to sell rather than buy. Additionally, the Relative Strength Index (RSI), which measures the momentum of the asset, has remained below 50 for much of March, often dipping below 40. This indicates that the momentum is firmly in the hands of sellers, with little bullish activity to reverse the trend.

The most recent reaction from HYPE’s price came when it tested the $12 support level, which had been briefly tested in December. While the price bounced from this level in recent hours, the recovery looks to be short-lived. This likely represents a liquidity grab rather than the beginning of a significant bullish reversal. A true bullish reversal for HYPE would require a clear break above resistance levels, which seems unlikely in the current market conditions.

Short-Term Rebound Potential

Although the medium to long-term outlook for HYPE remains bearish, there is potential for a short-term price bounce. The liquidation map indicates a concentration of high-leverage liquidation levels around the $14.84 region. This cluster could attract buying activity, especially from traders looking to close short positions or capitalize on the potential for a brief rebound. As a result, a short-term price move toward the $14.8-$15 range is likely in the near future.

However, this potential bounce is expected to be fleeting. Given the prevailing bearish sentiment and the overall market structure, any price increase to the $14.8-$15 range is expected to be retraced quickly, with the price likely dropping back to the $12.1 support level. A significant rebound would require sustained buying pressure, something that is currently lacking in the market.

Breaking the Bearish Trend

For HYPE to break the current bearish trend and set the stage for a sustained rally, it would need to reclaim key resistance levels. The $21.5 and $24.95 levels represent important areas that would need to be breached to signal a potential reversal. Without a clear move above these levels, the bearish bias in the medium term will likely remain intact, and HYPE will continue to face downward pressure.

In conclusion, while a short-term bounce toward the $14.8-$15 range is likely due to liquidation levels, HYPE’s overall market structure remains bearish. Until the price breaks through key resistance levels like $21.5 and $24.95, the medium-term outlook remains bleak. Traders should be cautious of a potential retracement after any short-term gains, as the current trend is still heavily influenced by selling pressure. A sustained reversal will require significant shifts in market sentiment, which seem unlikely in the near term.