HYPE's drop below $39.50 confirms the bearish trend; $34.50 and $31.00 now act as key support zones.
RSI at 37.59 and MACD below zero suggest weak momentum, though histogram hints at possible slowdown in selling.
Bulls must reclaim $39.50 with strong volume to regain control; failure risks further drop toward the $30 range.
Hyperliquid (HYPE) has entered a key point following a decisive break below a long standing support zone around $39.50. According to analyst Ali, the asset now faces increasing downside risk unless it swiftly reclaims key resistance levels.
At press time, HYPE was trading at $38.49 increasing slightly by 1.11% on the day. However, the broader outlook is weak after a sharp decline from July highs near $56. The asset has formed a consistent pattern of lower highs and lower closes, suggesting growing bearish pressure.
Support Weakens as Breakdown Gains Momentum
The break below $39.50 confirmed structural weakness, ending a consolidation range that held firm throughout June and early July. HYPE’s next support is around $34.50, a level that previously held during mid-June.
However, if this area fails to attract buyers, analysts now focus on $31.50 as the next major support. This lower zone, near $31.00, shows historical buying interest from early June. A retest of this level could occur if sellers remain in control.
Notably, the latest breakdown candle formed with strong volume and minimal lower wick, showing full control by sellers into the session close.
Volume and Momentum Indicators Remain Subdued
Volume is light, currently at 45.75K, suggesting limited conviction behind the recent bounce from $37.612. Prior rallies, such as those between April and June, saw stronger volume surges supporting upward moves.
HYPE/USDT 1-day price chart, Source: TradingView
Momentum indicators support the bearish view. The RSI is at 37.59, just above oversold level, while the MACD is below zero. The MACD line is at -0.984, beneath the signal line at -0.530, though the histogram’s positive reading of 0.454 hints at potential slowing of downside momentum.
Resistance Levels Hold the Key for Bulls
Price faces immediate resistance at the former $39.50 support, which must be reclaimed to shift sentiment toward neutral. A sustained move above $41–$42 would offer stronger bullish confirmation, but current technicals suggest that is unlikely unless volume improves.
Should the $37.00 level break, sellers may target the lower support range between $33 and $30. Until price shows strong recovery, the market is cautious as momentum still favors downside.
Final Word
Hyperliquid has broken its June support with momentum favoring sellers. If price fails to hold $34.50, $31.00 becomes increasingly likely. Momentum indicators remain weak, and low volume supports a cautious stance. Only a strong reclaim of $39.50 may stabilize the trend.
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