Hyperliquid plunges 11.22% after strong sellers dominate short-term trading action

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Hyperliquid drops 11.22% to $39 today

Highlights

Hyperliquid (HYPE) fell 11.22% to $39, trading below its MA-20 at $46.38 and MA-50 at $48.31 but above MA-200 at $35.96.
Daily technicals show strong downside momentum with weak MACD, declining RSI, and bearish intraday indicators, despite the MA-200 at $36 providing principal support.
Probability of a sustained price increase is below 20%, with HYPE likely stabilizing between $42.98 and $47.09 barring a breakout above $49.53 or a breakdown below $36.

Sellers dominate momentum as support and resistance define structure

This setup suggests ongoing short- and medium-term selling pressure, while the longer-term structure remains supported above the $36 area; Ichimoku Kijun at $49.53 acts as dynamic resistance, with MA-200 near $36 serving as the principal support. Momentum on the daily timeframe is weak, as the MACD indicates strong downside and the ADX shows an active trend with buyers attempting to regain control. Oscillators highlight mixed signals: the RSI is trending lower, the Stoch RSI signals further downside, and the CCI points to oversold conditions. Sellers dominate intraday momentum according to Bull/Bear Power, and the Awesome Oscillator also aligns with the bearish daily trend.

Further downside likely as sustained recovery remains elusive

For the next five trading days, the anticipated range is $42.98 to $47.09. There is a very low probability (less than 20%) of a sustained price increase, making further downside more likely. The baseline scenario assumes HYPE stabilizes in a sideways channel near current levels. A bullish scenario would require a breakout above resistance at $49.53, while a failure below $36 could expose the price to increased selling pressure and a move toward $35.96.

Viktoras Karapetjanc, expert at Traders Union, sees the recent dip in Hyperliquid (HYPE) as a reflection of short- and medium-term selling pressure, yet notes that the asset is still supported above the $36 zone thanks to its long-term structure. He believes that despite weak momentum and sellers dominating intraday action, the current setup suggests stabilization in a sideways channel is likely, with any bullish reversal requiring a strong breakout above $49.53. Karapetjanc remains optimistic about the recovery potential and sees longer-term resilience as a key factor. "As long as HYPE holds above the $36 support, I view this phase as a constructive consolidation that could set the stage for renewed upside momentum."

Previously it was noted that MetaMask introduced perpetual futures trading in its mobile application, allowing users to trade directly from their wallet with leverage up to 40x and support for over 150 tokens. The last report covered how Hyperliquid faced mixed momentum signals and key support boundaries heighten trend uncertainty, as seen in the article mixed momentum signals and key support boundaries.

Source of Data: HYPE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.