Hyperliquid: Buying Pressure Finally Ends... Hits $46 Resistance and Faces Plunge Risk

▲ Hyperliquid (Hyperliquid, HYPE), Cryptocurrency Decline/AI Generated Image

Hyperliquid (Hyperliquid, HYPE) is signaling the end of its rally, which began in March, by forming a shooting star pattern, a typical trend reversal signal, at its recent peak.

Crypto news outlet U.Today reported on May 3 (local time) that Hyperliquid is likely to enter a correction phase after hitting clear resistance on the charts. Hyperliquid recently showed strong upward momentum, targeting the $44 to $46 range, but formed a small-bodied candle with a long upper wick at its peak. Despite buying pressure pushing the price up, it failed to maintain its peak and was pushed down by selling pressure. Experts noted that this rejection signal appeared after a prolonged uptrend, suggesting that market strength may be exhausted.

Currently, Hyperliquid's structure stands at a critical juncture. The uptrend line that has supported the rally since late March is still intact but is currently undergoing a strong test. If the price loses its support line, the recent movement could be interpreted not as the start of a long-term uptrend but as the completion of a temporary impulsive wave. In the short term, it remains above the 26-day and 50-day exponential moving averages, but its support is gradually weakening. The rising 100-day exponential moving average from below could act as a buffer, but if the downward momentum strengthens, it might act like a magnet pulling the price down rather than providing support.

Volume indicators also do not support the health of the uptrend. The absence of a clear increase in trading participants during attempts to break resistance diminishes the credibility of a breakout scenario. The Relative Strength Index (RSI) also shows a flattening trend from the middle to the upper region, suggesting stagnation rather than accelerating upward momentum. A shooting star pattern at the peak is generally considered a precursor to a significant price decline or the entry into a consolidation phase.

If the uptrend line breaks, Hyperliquid is expected to fall to the $38 to $36 range. This range is where the 100-day exponential moving average and structural support converge. Given the current market structure lacks momentum for further upside, investors should carefully monitor whether the trendline is breached. The strong rejection signal at the peak is a decisive indicator that market energy is shifting towards the sell side.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*