Hyperliquid (HYPE) has been experiencing a notable bearish trend through November and December, despite fleeting attempts at recovery. A confluence of fundamental token unlocks and compelling technical indicators suggests that the cryptocurrency is under significant selling pressure, reinforcing a challenging outlook for buyers in the near term.
Underlying Pressures and Technical Breakdown
A primary factor contributing to HYPE's persistent downtrend is the monthly release of 10 million tokens, a mechanism whose full impact on selling pressure is still being assessed. This supply influx coincides with a clearly defined bearish structure on the daily chart, characterized by a consistent series of lower highs and lower lows since October. The recent breach of the $29.15 support level further solidifies this bearish bias, indicating potential for deeper losses. Moreover, technical analysis points to a critical supply zone between $30.35 and $35.36, where any upward price movement is likely to be met with intense selling. Indicators like the DMI confirm a strong bearish trend, while the CMF signals robust capital outflows, underscoring the prevailing negative sentiment.
Key Price Levels and Future Outlook
Looking ahead, Fibonacci extension levels project the next significant bearish price target for HYPE at $24.19. While the hourly chart presents some mixed signals, including an active uptrend on the DMI, the overarching daily timeframe trend takes precedence, continuing to reinforce a bearish perspective. For HYPE bulls to reverse this entrenched downtrend, a substantial rally pushing the price beyond $36.17 would be necessary—a feat considered highly unlikely given the current market structure and ongoing capital outflows. Therefore, monitoring key short-term resistances at $29.89 and $30.68 is crucial, as rejection from these zones could confirm further downward momentum towards the projected $24.19 target.
