Hyperliquid (HYPE) has taken a significant hit, plummeting 16% in the past 24 hours as sellers seize control. With technical indicators flashing bearish signals, traders are on high alert for further declines. Will HYPE manage to recover, or is a steeper drop on the horizon?
Sellers Dominate as Technical Indicators Turn Bearish
HYPE’s decline has dragged its market cap down to $7.4 billion, and key technical signals suggest that bearish momentum is strengthening. The Directional Movement Index (DMI) and Bollinger Band Trend (BBTrend) have weakened significantly, indicating a potential extended downtrend.
The Exponential Moving Averages (EMA) are also showing troubling signs, with the possibility of a looming death cross. If this bearish crossover occurs, HYPE could break below the crucial support level of $21.1, potentially sliding further to $18.89. However, if bulls manage to stage a comeback, a push toward $24.39 could shift momentum back in favor of buyers.
DMI Signals a Stronger Downtrend
The Directional Movement Index (DMI) shows that sellers are firmly in control. The Average Directional Index (ADX) has surged from 9 to 20.3 within just four days, indicating strengthening bearish momentum.
Meanwhile, the +DI (Positive Directional Indicator) has plummeted from 30.9 to 14.1, while the -DI (Negative Directional Indicator) has risen sharply from 13.5 to 25.2. This crossover suggests that selling pressure is intensifying. If the ADX continues rising above 25, it would confirm a more robust downtrend, potentially leading to further losses.
BBTrend Indicates Fading Bullish Momentum
Although HYPE’s BBTrend remains positive, it has sharply declined from 10.1 to 3.15 within a day. This rapid drop indicates that bullish momentum is weakening, increasing the risk of a potential trend reversal. If the BBTrend turns negative, it would further confirm bearish dominance and raise the likelihood of additional downside pressure.
However, a stabilization of BBTrend could signal a slowdown in selling pressure, giving bulls a chance to defend key support levels.
HYPE Price Forecast: Will It Drop Below $20?
The EMA lines are at a crucial juncture, with short-term EMAs rapidly declining toward long-term EMAs. If a death cross occurs—where short-term EMAs dip below long-term EMAs—it could signal a prolonged bearish phase.
In such a scenario, HYPE may break below the key $21.1 support level. A further drop could see prices testing $20.1 or even $18.89, marking the lowest level since January 13.
On the flip side, if bulls manage to reclaim momentum, HYPE could rebound toward the $24.39 resistance level. A breakout above this resistance could push prices as high as $27, offering a potential recovery opportunity.
Final Thoughts
Hyperliquid (HYPE) is currently facing strong bearish pressure, with technical indicators pointing toward further declines. Whether the price stabilizes or continues its descent depends on key support levels holding firm. The next few trading sessions will be crucial in determining HYPE’s short-term trajectory. Traders should closely monitor resistance at $24.39 and support at $21.1 to gauge the market’s next move.