Hyperliquid’s Value Dips Below Key Support Level, Raising Concerns of Potential $13 Plunge
With a significant decrease in value over the last 24 hours, Hyperliquid [HYPE] has emerged as the biggest loser and has now hit a critical point.
The drop in HYPE’s price seems to have shifted the general market sentiment towards pessimism due to the emergence of negative price movements.
Analysis of HYPE’s Technical Indicators and Price Trends
As per the technical analysis by CryptoCrypto, HYPE recently broke down from a symmetrical pattern in its pricing behavior. This breakdown breached its important support threshold at $22.70 following the recent price decline.
The breach of this crucial support level suggests a potential significant downward movement for the asset.
By looking at historical trends, a daily candle closure below $22.50 might lead to a 14% drop, possibly reaching $19 in the upcoming days.
Given the current market sentiment, it appears quite plausible for HYPE to hit this anticipated level.
Moreover, the Average Directional Index (ADX) for HYPE stood at 11.20 during the latest update, signifying a weak asset strength. This condition may explain the robust downward momentum.
Insights from Analysts on HYPE’s Price Decline
Following the recent price decrease and breakdown, a significant cryptocurrency analyst shared a forward-looking prediction on X (formerly Twitter).
The analyst highlighted that breaching the symmetrical triangle pattern might push HYPE down to the $13 mark in the near future, aligning perfectly with CryptoCrypto’s analysis.
Current Price Situation for HYPE
Despite these forecasts, HYPE was hovering around $21.50 at the time of this report, experiencing a decrease of more than 12% in the past 24 hours.
During this time frame, the trading volume saw a steep 95% rise, indicating increased involvement from traders and investors, a surge far exceeding previous days.
This surge could be attributed to the closure of long positions and selling of assets, or possibly an accumulation phase triggered by the price fall.
HYPE Traders’ Highly Leveraged Positions
Analysis from the on-chain analytics firm Coinglass shows a prevalence of bearish price actions, suggesting a strong bearish dominance over the asset. This dominance might stem from skepticism regarding any imminent price rallies.
The data from HYPE Exchange’s Liquidation Map discloses that traders have over-leveraged positions at $21.17 on the lower end and $22.79 on the higher side, currently serving as support and resistance levels for HYPE.
Furthermore, traders have amassed long positions valued at $415k and short positions worth $2.90 million, painting a clear picture of short sellers taking charge and reinforcing the bearish sentiment surrounding HYPE.