Hyperliquid's 62-day Reign Ends... Cruel Correction Begins as Support Line Shatters

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

Hyperliquid (HYPE) has entered a downtrend, breaking away from the strong upward trendline it had maintained for the past 62 days.

U.Today reported on April 28 (local time) that HYPE's market situation is deteriorating. HYPE had maintained a solid upward trend, consistently recording higher lows. However, this structure recently completely collapsed, leading to a shift in power. Instead of prices gradually slipping, a strong selling pressure was observed, breaking the trendline downwards in one go.

As the trendline collapsed, the market immediately turned bearish. Recent attempts at a rebound only managed to form lower highs, failing to reach the previous high in the mid-$40s. Moving averages have also flattened, and the price is falling below them. This indicates that the asset's expansion phase has ended, and a distribution or correction phase has begun. The market is currently undergoing a structural shift from neutral to bearish.

With momentum rapidly decelerating, the possibility of deeper price correction arises. The 200-day baseline is located significantly lower than the current price, opening up room for further declines. Trading volume also failed to support recent upward attempts, indicating a lack of buying conviction. No large-scale panic selling occurred during this decline. This suggests that a gradual decline due to loss of demand may continue rather than a price reversal.

HYPE is expected to test support levels in the mid-to-late $30s in the future. There is a high probability of a sideways market with a downward bias. For the upward trend to resume, the broken trendline must be recovered. The challenge remains to break through the recently formed lower highs with significant trading volume. Failing to do so, the price is likely to gravitate downwards where there is less resistance.

The current cryptocurrency market is in a correction regime before a complete trend reversal. The bullish framework that sustained HYPE's rally has virtually disappeared. Investors should maintain a conservative outlook until further evidence emerges. The upward momentum that once drove the market has now transformed into downward pressure, weighing on prices.

*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.*