Hyperliquid's HYPE token has broken below its $54 support zone and is heading toward $48, the next level bears are targeting. Technical indicators show selling pressure building even as a still-positive funding rate suggests bullish positions haven't fully unwound.
Hyperliquid's HYPE token traded at $52.06 at press time, down nearly 1%. Daily trading volume stayed subdued at about 26.97K HYPE, even as the token holds a multi-billion-dollar market capitalization.
The token has extended its recent correction after failing to hold above the $54 support zone, shifting market sentiment toward sellers. Traders are now watching whether buyers can defend the next major support near $48 or whether bearish momentum drives a deeper slide.
Bears Take Control After a Triple-Top Breakdown
The decline follows a triple-top pattern near $72, where repeated rejections confirmed strong supply and shifted momentum from buyers to sellers. As a result, HYPE has posted a steady series of lower highs and lower lows on the daily chart.
Following that reversal, the latest sell-off pushed the token below its $54 support, a level that had previously acted as a strong demand area during June's rally. Losing that support increases the probability of an extended correction if buyers fail to reclaim it.
Momentum Indicators Point to Rising Bearish Pressure
On-Balance Volume has continued trending lower, a sign that selling pressure has outweighed buying activity in recent weeks. Meanwhile, the RSI has slipped below the neutral mark, reflecting weakening momentum.
Open interest has rebounded to about 3.88 million even as price keeps falling — a pattern that often signals new positions entering rather than existing traders exiting. The aggregated funding rate remains slightly positive at around 0.006%, meaning long positions are still paying shorts despite the pullback. If HYPE fails to recover above the broken support, those leveraged longs could come under additional pressure.
Can Bulls Defend the $48 Support?
The bullish case hinges on buyers reclaiming the $54–$55 resistance zone. A sustained move above it could open the way toward $60, with $72 as the next resistance if buying momentum strengthens further.
Conversely, the bearish scenario remains dominant as long as HYPE trades below its former support. A decisive break below $48 could accelerate the sell-off and expose the token to the $42–$44 demand zone.
For now, $48 remains the level to watch, with buyers' ability to defend it likely to determine HYPE's next move.
Source: Coinpedia Fintech News
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