Hyperliquid Price Falls Below $26: What’s Next for the Cryptocurrency?
Hyperliquid (HYPE) has experienced a significant decline in its price, falling below the critical support level of $26. This downturn has led to the cryptocurrency entering oversold territory, with its Relative Strength Index (RSI) indicating a potential buying opportunity. However, despite this, the bearish structure remains intact, suggesting that the risk of a deeper correction towards lower support levels is increasing.
The loss of the $26 support level is a significant technical breakdown for Hyperliquid, as it previously acted as the final area of structural support capable of triggering a significant upward rotation. With the price now below this level, the probability of the uptrend continuing has decreased significantly. The collapse has reinforced the prevailing downtrend, with Hyperliquid continuing to make lower highs and lower lows, a classic sign that sellers remain in full control.
Key Technical Points to Consider
Several key technical points are worth considering when analyzing the current state of Hyperliquid’s price. Firstly, the $26 support has been lost on a closing basis, confirming the continuation of the downward trend. Secondly, the RSI has entered the oversold region, but the dynamics remain negative. Finally, the next major downside support is around $19, where the remaining liquidity remains unused.
HYPEUSDT (1D) chart, source: TradingView
What’s Driving the Downtrend?
The recent loss of the $26 support level represents a significant technical breakdown for Hyperliquid. This zone previously acted as the final area of structural support capable of triggering a significant upward rotation. Once the price falls below this level, the probability of the uptrend continuing decreases significantly. The collapse has reinforced the prevailing downtrend, with Hyperliquid continuing to make lower highs and lower lows, a classic sign that sellers remain in full control.
The next area of interest is near $19, which is the next high time frame support zone. Importantly, this region has not been tested in the current move, meaning the remaining liquidity remains intact. Markets tend to look for this idle liquidity, especially during aggressive downtrends. As a result, the probability of a downward price movement towards this level after the breakdown has increased.
Expert Insights and Analysis
According to experts, the Relative Strength Index (RSI) is currently in oversold territory, which can sometimes raise expectations of a recovery. However, during strong downtrends, oscillators can remain oversold for extended periods while the price continues to decline. Without a shift in market structure, oversold values reflect trend strength rather than exhaustion. This distinction is crucial for Hyperliquid, as despite the oversold RSI, there is currently no structural evidence of a reversal.
For more information and to stay up-to-date on the latest developments in the cryptocurrency market, visit https://crypto.news/hyperliquid-price-weakens-oversold-signals-stop-bears/
