Hyperliquid's 62-day Reign Ends...A Cruel Correction Begins, Shattering Support Levels

▲ 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 uptrend with consistent higher lows. However, this structure has recently completely collapsed, leading to a shift in power. Instead of a gradual price decline, a strong sell-off was observed, breaking the trendline downwards in one go.

As the trendline collapsed, the market immediately turned bearish. Recent attempts at recovery only resulted in forming lower highs, failing to reach the previous high in the mid-$40s. Moving averages are also flattening, and the price is slipping below them. This signifies that the asset's expansion 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 slowing down, the possibility of a deeper price correction is raised. The 200-day baseline is located much lower than the current price, opening up room for further decline. Trading volume also failed to support recent upward attempts, revealing a lack of buying conviction. No large-scale panic selling occurred during this decline. This suggests that a gradual decline due to a 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 uptrend 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 will likely lead to prices gravitating towards the path of least resistance downwards.

The current cryptocurrency market is in a correction regime before a complete trend reversal. The bullish framework that supported 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 turned 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.*