After a record run, Hyperliquid’s rally fades | Credit: Hameem Sarwar
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Key Takeaways
After rallying to an all-time high in September, Hyperliquid has dropped 26%.
The Bull Bear Power confirms seller dominance, while the RSI trends lower.
Failure to hold above $45 could send prices toward $38.52 (0.236 Fib).
In the past few days, Hyperliquid (HYPE) has experienced declines after a strong rally. At press time, HYPE trades at $44.27, down 26% from its all-time high reached in September.
The correction highlights a clear shift in sentiment as demand for the altcoin continues to drop.
Will the Hyperliquid crypto experience an extended correction? Let’s find out.
Hyperliquid Faces Correction
On the 4-hour chart, the Bull Bear Power (BBP) indicator is deeply entrenched in negative territory at -4.10. This position indicates strong bearish control as sellers maintain pressure over buyers.
The consecutive red bars indicate weakening bullish momentum and suggest a high likelihood of continued downside movement in the near term.
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On the daily chart, the Relative Strength Index trends downward, currently at 51.03, showing weak bullish momentum.
This drop signals a cooling phase after recent gains, suggesting traders may be taking profits or losing confidence in sustaining higher prices.
If the RSI dips below the neutral 50 mark, it could confirm a short-term bearish reversal, opening the path for further downside movement.
Furthermore, a close examination of the chart reveals that Hyperliquid’s price has formed a rising wedge, indicating a bearish trend.
Similarly, the Awesome Oscillator has printed a red histogram bar, indicating an early sign of trend reversal while remaining above the positive threshold.
This suggests that although bullish momentum persists, it is gradually weakening as the market shifts from optimism to caution.
If subsequent bars continue turning red and approach the zero line, it would strengthen the case for a bearish crossover.
At the time of writing, the Hyperliquid crypto trades at $43.88, hovering around the 0.382 Fib level with potential to break below this support.
Failure to hold this zone could trigger additional declines, pushing the token toward the next key support level at the 0.236 Fibonacci (0.236 Fib) near $38.55.
A drop to this level would test the market strength. Additionally, this could determine whether HYPE’s price can stabilize or continue its correction phase.
However, if HYPE bulls defend the 0.382 Fib level and rebound toward the 0.5 Fib level at $46.63, it could signal bullish strength.
A strong close above this level would confirm buyer dominance. It could also pave the way for a retest of the next resistance at the 0.618 Fib level near $50.24.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
