Hyperliquid (HYPE) has experienced a significant 16% drop in its price over the past 24 hours, reducing its market capitalization to $7.4 billion. This price decline has raised concerns among investors, with technical indicators suggesting that sellers have taken control of the market.
Technical analysis indicates that Hyperliquid’s price decline is not just a short-term fluctuation, but potentially the beginning of a more extended downtrend. Key market indicators, including the Directional Movement Index (DMI) and BBTrend, show that the balance of power is shifting toward the sellers. If these signals hold, the price could experience further downward movement.
One of the most telling signs of a potential downturn is the Directional Movement Index (DMI). The DMI tracks the strength and direction of a trend by comparing positive and negative directional indicators. For HYPE, the +DI (Positive Directional Indicator) has sharply dropped from 30.9 to 14.1, while the -DI (Negative Directional Indicator) has surged from 13.5 to 25.2. This suggests that sellers are gaining control, which could lead to further price declines.
Additionally, the Average Directional Index (ADX), which measures trend strength, has risen from 9 to 20.3 in just a few days. Although it is still below the key threshold of 25 (which signals a strong trend), this increase suggests that the ongoing downtrend may be gaining momentum.
Another important indicator, the BBTrend (Bollinger Band Trend), also shows a weakening of bullish momentum. After reaching a value of 10.1 just yesterday, the BBTrend has fallen to 3.15. Although this value is still positive, the sharp decline points to a reduction in buying pressure. If this trend continues and the BBTrend enters negative territory, it could confirm the shift to a bearish market.
With the decline in BBTrend, the risk of a more significant pullback increases. If the momentum continues to weaken, the price of HYPE could face additional downward pressure in the near term.
Looking at Hyperliquid’s Exponential Moving Average (EMA) lines, there is further cause for concern. The short-term EMAs are currently above the long-term EMAs, but they are declining rapidly. If the short-term EMAs cross below the long-term ones, it would form a “death cross”—a technical pattern often associated with a stronger bearish trend.
A death cross could push HYPE’s price down to key support levels around $21.1. If this support fails to hold, the price could fall further to $20.1 or even $18.89. A sustained decline below these levels would signal increased selling pressure and a prolonged downtrend.
For those monitoring Hyperliquid’s price, there are two important levels to keep an eye on: support at $21.1 and resistance at $24.39. If HYPE can maintain support at $21.1 and buyers step in to regain momentum, the price could potentially rebound. A breakout above $24.39 would signal a shift in momentum, possibly pushing HYPE toward $27.
The recent 16% drop in Hyperliquid’s price highlights the growing bearish sentiment in the market. With key technical indicators suggesting that sellers are in control, investors should be cautious in the short term. If HYPE fails to hold its support levels and the downtrend continues, the price could fall further. However, if buyers manage to regain control and push the price above key resistance, a reversal could be in store.
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