Hyperliquid (HYPE) Price Breaks Below $20 Support — Signals Deeper Correction

Key Takeaways

• The Hyperliquid token price has dropped by 25% within the past week, losing the $20 support in the process.
• The 4-hour chart shows bearish momentum, indicating that HYPE might struggle to recover anytime soon.
• Analysis of the daily timeframe also aligns with the thesis, with signs that HYPE’s price risk falls below $15.
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The price of HYPE, the decentralized perpetual trading platform Hyperliquid token, continues to break down. In the last 24 hours, HYPE’s price has dropped by 8%, extending its seven-day loss to 25%.

The downtrend suggests that selling pressure remains strong, and buyers hesitate to halt the capitulation. As a result of this decline, HYPE’s price has decreased below $20.

If this trend persists, HYPE might struggle to recover as the market displays signs of a fading bullish phase.

HYPE Correction Continues

In December, HYPE breached $35 and hit an all-time high. Since then, the price has been undergoing a correctional phase.

A look at the 4-hour chart shows that HYPE’s price has been moving between a swing low of $17.43 and a swing high of $28.42.

Recently, the cryptocurrency tried to hold above the $20 mark, a crucial support that has broken below it. Zooming into the chart again, CCN observes that the Awesome Oscillator (AO) remains in the negative region.

The AO employs the recent price movement and compares it with the historical ones to measure momentum. When the AO reading is positive, the trend is bullish.

But in this case, it is negative, indicating that the momentum around HYPE is bearish.

Should this remain the same, HYPE’s price, which is 45% down from its all-time high, is unlikely to experience relief.

HYPE Price Analysis: No Bounce Ahead

On the daily timeframe, HYPE’s price action has not changed much compared to the 4-hour analysis. Despite that, it is important to mention that HYPE tried to rally above $25 on Feb. 21.

But amid strong selling pressure, the cryptocurrency faced rejection. Following its inability to break above the resistance, the altcoin’s value tanked and currently trades below key moving averages.

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As seen below, HYPE’s price hovers below the 20-day and 50-period Exponential Moving Averages. Technically, the trend is bullish when the price is above the EMA.

Since it is below it, it implies a bearish trend. Besides that, the 50 EMA (yellow) has crossed above the 20 EMA (blue), which is a death cross, validating the bearish bias.

The cryptocurrency’s value might slip to $15.15 if this remains the same. since it has failed to defend the $20 support. Should selling pressure increase more than anticipated, the value could drop to the 0.236 Fibonacci retracement at $10.32.

On the flip side, this trend could change if HYPE’s price breaks above the 20 and 50 EMAs. In that case, the correction might not extend.

Instead, the altcoin might breach the resistance at $22.95, driving HYPE above the $30 mark.