Hyperliquid (HYPE) has recently captivated market attention with its price movements, sparking debates among traders about its immediate future. Despite some encouraging rallies, a deeper analysis of its market structure, key indicators, and price action suggests a predominantly bearish outlook, signaling caution for those anticipating a sustained recovery.
Bearish Market Structure and Key Resistance
The daily timeframe for HYPE has maintained a bearish market structure since September 25th, when the price decisively fell below the crucial swing low of $42.39. Subsequent attempts to rally, even reaching $51, have failed to establish a bullish reversal. Critical resistance levels have been identified between $47.1 and $50.85, acting as a significant supply zone, with a Fibonacci retracement level at $44.57 adding further overhead pressure. To negate this bearish stance and flip the daily structure bullish, HYPE buyers would need to decisively push prices above these obstacles and, more importantly, surpass the $51.4 swing high. Compounding this outlook, the Relative Strength Index (RSI) hovers at 41, indicating bearish momentum, while the On-Balance Volume (OBV) has shown a consistent downtrend since mid-September, reflecting persistent selling pressure.
Short-Term Weakness and Potential Downside Targets
While the immediate short-term, as seen on the 1-hour chart, initially displayed a bullish shift, this momentum is currently being challenged. At the time of writing, the hourly swing low of $39.64 is under threat, and a decisive close below this level could accelerate a further decline. The 1-hour RSI also recently dipped below the neutral 50 mark, reinforcing the growing bearish sentiment. Given the overarching bearish daily structure, traders are advised to be mindful of potential downside targets. Key support levels lie at $36, which has acted as a short-term demand zone, with further significant support identified at $33.10 and $31.18. An imbalance zone between $32.95 and $42.46 also presents a risk, potentially initiating another bearish price move.
