- Hyperliquid slipped below its ascending channel, failing to reclaim bullish structure, and now trades at a critical support zone near the 50 SMA.
- A confirmed breakdown below $47 with strong selling momentum could drive HYPE toward the $42–$40 demand zone, testing prior congestion support.
- Bulls must reclaim and secure a daily close above $50 with strong volume to neutralize bearish pressure and regain upward market control.
Hyperliquid (HYPE) is under pressure as it trades at $48.07, struggling to maintain channel support near the 50-day Simple Moving Average. The token has dropped 2.54% in 24 hours and 9.72% over the past week.
Channel Structure Under Strain
$HYPE had been trending inside a well-defined ascending channel, according to Alpha Crypto Signal. The structure was marked by parallel lines moving upward, supporting a steady bullish phase. Recently, the token slipped below the channel, failing to reclaim the level.
This breakdown attempt is seen as a technical failure since the price could not sustain momentum within the bullish framework. The sharp rejection below the channel has raised concern about the continuation of downward momentum. Traders are closely monitoring if this level holds or if pressure intensifies further.
The failed attempt suggests weakness in buyer strength, with the recent bearish move invalidating part of the positive structure. Only a quick recovery back into the channel could restore confidence in short-term bullish momentum.
Critical Support at $47 and 50 SMA
Currently, Hyperliquid is testing a confluence support area near the lower channel boundary and the 50-day SMA at around $47.38. This technical zone combines trendline support with a moving average floor.
If this support level breaks with conviction, it would confirm seller dominance and accelerate bearish pressure in the near term. Alpha Crypto Signal emphasized that losing this confluence zone would mark a key momentum shift.
A failure here could pave the way for price movement toward the $42–$40 demand area, which previously served as a congestion zone. Market participants view this area as the next logical support target if current levels give way.
Bearish Momentum and Neutralization Path
Bearish momentum has strengthened with red candles and increased trading volume during the recent decline. A confirmed close below $47 would clear the path toward deeper correction zones.
The demand range between $42 and $40 remains a focus for traders preparing for potential downside continuation. This range has historically provided stability and could attract renewed buyer interest if tested again.
For the bearish outlook to be invalidated, bulls must reclaim momentum with a daily close above $50. Alpha Crypto Signal noted that such a recovery would also require sustained buying activity and strong volume. Only then could Hyperliquid re-enter the ascending channel and potentially resume its prior trend.
