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Hyperliquid (HYPE) has recently lost a critical support level at $40, sending bearish signals across the market. Traders are watching closely as the token faces increased selling pressure. With momentum clearly on the side of the bears, the coming days could determine whether HYPE finds stability—or plunges further toward the low $30s.
Price Action: $40 Break Signals Weakness
The breakdown below $40 is a key technical development. This level had served as solid support for multiple weeks, and many investors hoped it would hold firm. However, once it was breached, it quickly flipped into resistance. Now, traders are targeting $37 as the next area where buying might resume.
If $37 fails to act as a strong support level, market participants believe HYPE could find its next major floor around $32. This area represents a previous accumulation zone, where buyers stepped in earlier this year to halt a correction. The big question now is whether that demand will return or if bearish momentum will drive the price even lower.
Momentum Shifts Bearish
Over the past four days, HYPE has printed a series of red daily candles, each one confirming the shift in market sentiment. The continuous decline has pushed buyers to the sidelines, while sellers remain in control.
Volume also suggests growing bearish conviction. As the token continues to fall, trading activity has increased—an indication that many investors are choosing to exit positions. Unless there’s a strong bullish reversal or a positive catalyst, HYPE’s downtrend may persist.
MACD Shows Bearish Cross on the 3-Day Chart
One of the more alarming signals came from the 3-day MACD indicator, which has formed a bearish cross. This type of signal often marks the start of extended corrections. Traders who follow technical analysis closely view such crossovers as a warning that downward momentum could last for several weeks or more.
The MACD (Moving Average Convergence Divergence) is a momentum indicator that reflects the relationship between two moving averages of a security’s price. A bearish crossover typically happens when the MACD line crosses below the signal line, suggesting selling strength is rising. In this case, it confirms the recent bearish trend on higher time frames and reduces the chance of a quick recovery.
Support and Resistance Levels to Watch
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Immediate Resistance: $40
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Secondary Resistance: $43
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Immediate Support: $37
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Key Support Zone: $32
If bulls manage to push the price back above $40, this could invalidate the bearish setup and open the door to a short-term recovery. However, reclaiming this level won’t be easy, especially as sellers remain dominant and overall market conditions lean bearish.
On the flip side, if the $37 level does not hold, traders anticipate another leg down toward $32. This would represent a 20%+ drop from the current levels and could trigger panic selling among retail investors.
What Could Trigger a Rebound?
While the outlook is bearish for now, some factors could still change the market narrative. For example:
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Strong community support: If the Hyperliquid community rallies around the project, renewed buying interest could help stabilize the token.
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Ecosystem developments: reveal related to ecosystem growth, partnerships, or integrations could reignite investor confidence.
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Crypto market sentiment: If the broader crypto market begins a recovery, it could lift HYPE alongside other altcoins.
However, traders should be cautious. Without a clear technical reversal or fundamental catalyst, any upward movement may be short-lived.
Final Thoughts
Hyperliquid (HYPE) is currently navigating a critical phase. The breakdown below $40 marks a significant loss of support and indicates growing bearish pressure. With multiple red daily candles and a bearish MACD crossover, momentum is clearly against the bulls. If support at $37 breaks down, a test of $32 becomes increasingly likely.
For now, traders should monitor price action closely, especially near the $37 and $32 support zones. Recovery is possible, but unlikely without a catalyst or a broader market bounce. Until then, caution is warranted as Hyperliquid finds its footing in a volatile trading environment.
