- HyperLiquid’s HYPE token lost critical $42.24 resistance after a failed breakout, signaling a corrective phase with weakening structure.
- Trading volume has declined since the all-time high, reflecting weak demand and raising the risk of an extended price correction.
- Point of control near $30 now serves as key support, with $26.53 emerging as the next significant high-timeframe level.
HyperLiquid’s HYPE token has entered a corrective phase after failing to sustain above the high-timeframe resistance at $42.24. The level, briefly reclaimed during the move to new all-time highs, has now turned into a failed breakout, signaling a weakening market structure. The breakdown has shifted focus to lower support zones, with price action moving closer to the point of control.
The point of control, located near $30, is emerging as the first significant support area. This level has not yet been tested during the ongoing correction, making it an important reference point for traders. If price manages to stabilize above this zone on a daily closing basis, the current decline could remain a healthy retracement within the larger uptrend.
Risk of Extended Decline
Failure to defend the $30 region would likely push HYPE toward the value area low, which also aligns near $30 but extends down toward $26.53. That level represents the next major high-timeframe support and would define a wider range between $42.24 resistance and $26.53 support. Such a structure could introduce a prolonged rotational phase in the absence of stronger trading activity.
The weak aspect of the recent rally is highlighted by the use of volume analysis. Daily trading volume has been in gradual decline since new highs were printed, with there being no confidence at the higher levels shown by buyers. This decline in demand makes the possibility that the corrective structure might expand more probable unless a significant recovery in the volume of activity is made.
Sentiment in the market has changed ever since the failed auction at 42.24, with traders wary of the $30 level being the strengthening position. A preservation of this zone will further buoy a rebound; otherwise, a loss will further increase the risk of making an attempt towards the target at $26.53. Unless more intensified buying interest comes back into the picture, the price action may stagnate in a larger range.
