Summary: Hyperliquid slides below $38: THIS points toward $31 retest

Hyperliquid (HYPE) has recently faced significant downward pressure, retreating into a price range it has occupied since late May. Following a failed attempt to break past the $41 resistance in mid-July, HYPE has fallen back, indicating a weakening market position. At the time of analysis, the token was trading below its mid-range level of $37.9 and appeared to be retesting the $38 mark as a new resistance, signaling continued bearish sentiment. Several technical indicators reinforce this pessimistic outlook. The On-Balance Volume (OBV) has shown a consistent descent over the past two weeks, pointing to steady selling pressure that previously led to HYPE's rejection at $49. The token's initial retracement into its established range, followed by its drop below the mid-range level, are strong signals for ongoing bearish momentum, making a further decline to the range low of $31 increasingly probable. Despite the prevailing bearish trend, traders should prepare for potential short-term volatility. A possible bounce in Bitcoin (BTC) from its short-term support zone could temporarily lift HYPE prices. Furthermore, the 4-hour chart reveals a bullish divergence on the Relative Strength Index (RSI), suggesting a potential bounce towards the $39-$40 region. While short sellers need to be cautious of such temporary rallies, the overall market structure for HYPE remains bearish. A sustained positive shift would only occur if HYPE bulls manage to flip the $38 region from resistance to support and push prices convincingly above $39.2. For long-term investors, the anticipated move to the range lows might present a strategic buying opportunity.