Hyperliquid Faces Sharp Correction as Price Tumbles from all-Time High
Hyperliquid (HYPE) is experiencing a severe correction after hitting an all-time high near $45. The price is now trending downward, and bottom signs are not yet visible. A critically important test of support at $26.53 may be required for a potential recovery.
The recent high near $45 is now acting as a resistance level. Since this peak,the price has trended downward without forming a higher low that often signals a trend reversal. Currently, the market is exploring a minor support area known as the Value Area High. While this zone might offer a slight bounce, it’s unlikely to provide lasting support.
- Current minor support: Value Area High
- Main support to watch: $26.53
- Previous all-time high: $45, now a resistance level
- RSI below 50, indicating further downside
The $26.53 support zone is crucial as it aligns with the 0.618 Fibonacci retracement and the Point of Control, an area of significant trading volume. This level represents a strong technical confluence, making it a potential bottoming spot for Hyperliquid.
The RSI, currently below the midpoint of 50, suggests bearish momentum. Traders should expect further declines until the asset reaches oversold territory. If the price tests the $26.53 support while the RSI dips into oversold levels, it could mark the start of a new bullish phase.
For now, traders should remain cautious. Hyperliquid has yet to form a higher low, and more downside action is likely. Confirmation from volume,structure,and indicator signals will be essential to identify a sustainable bottom.
