Hyperliquid (HYPE) Price Down 18%, Could Drop Further as Bulls Presence Fade

Key Takeaways

• HYPE’s price followed the broader market trend and has plummeted 18% in the last 24 hours.
• The 4-hour chart shows that the altcoin is oversold, but bears still control the direction.
• The MACD on the daily chart shows bearish momentum, indicating that a rebound is unlikely.
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As CCN’s analysis predicted last week, Hyperliquid’s (HYPE) drop below the $20 support was a recipe for disaster. So, it is no surprise that the cryptocurrency’s value has failed to bounce above that level today.

In the last 24 hours, Hyperliquid’s price has tumbled by 18%. While this correction is synonymous with certain macroeconomic events, it is important to note that increased sell-offs also contributed to it.

With bearish sentiment growing, the token’s short-term outlook seems gloomy. Here is how HYPE could fare in the coming days after this correction that has left it 53% off its all-time high.

HYPE Breaks Down Again

After HYPE’s price lost the $20 support and failed to turn it into a resistance level to breach, another support at $18.55 appeared.

However, bulls could not defend this point due to the increasing market selling pressure. As a result, HYPE has declined to $16.55.

Amid this decline, the Relative Strength Index (RSI) reading has also declined. The RSI measures momentum using the speed and size of price changes. When the reading is above the midpoint, the momentum is bullish.

But when it is below it, the momentum is bearish. This indicator also tells when an asset is overbought or oversold.

Ratings above 70.00 mean the stock is overbought. However, in HYPE’s case, the RSI reading is below 30.00, indicating that it is oversold.

Typically, when an asset is oversold, a price rebound is possible, as selling pressure may have reached exhaustion.

However, this does not guarantee an immediate recovery, especially if bearish sentiment persists, as it is with HYPE.

Bulls Lose Ground

Furthermore, Bull Bear Power (BBP) supports the thesis that Hyperliquid’s price might not recover yet. BBP is a technical indicator that compares the strength of bulls (buyers ) to bears (sellers).

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Bulls have the upper hand when the BBP reading is positive, and prices can increase. However, on the 4-hour chart, the BBP has dropped to a reading of -4.34.

Should this remain the same, then the Hyperliquid price might continue to trade lower or move sideways.

HYPE Price Risks Drop Toward $10

Like the 4-hour timeframe, the daily chart also presents a similar outlook. The Moving Average Convergence Divergence (MACD) has dropped to the negative region on the daily chart.

In line with that, the 12-day Exponential Moving Average (EMA) — in blue, has crossed below the 50 EMA (orange). This crossover indicates a bearish trend.

If sustained, Hyperliquid’s price might continue to hit lower values. Using the Fibonacci retracement levels, HYPE is now trading below the crucial 0.236 pullback region.

Due to this trend, the token will likely decline to $15.80. If selling pressure increases and the broader market condition fails to improve, HYPE risks falling below $10.

On the contrary, things could change if bulls can help the token regain $19.80 at the 0.236 Fib level. In that scenario, HYPE could jump to $22.29 or trade as high as $26.31.