- HYPE tests $47–46 support zone after failing to sustain its ascending channel breakout.
- Selling pressure increases as trading volume spikes, raising risk of deeper correction.
- A daily close above $50 is needed to neutralize bearish sentiment and restore structure.
Hyperliquid (HYPE) is at a decisive point after its failed attempt to hold an ascending channel structure. Market observers caution that the asset now trades on fragile footing, with a breakdown looming unless buyers regain control.
Technical Pressure Near Support
According to Alpha Crypto Signal (@alphacryptosign), HYPE attempted to defend its ascending channel but quickly slipped back under pressure. The failed breakout left price action exposed, with sellers forcing the market toward key structural levels.
The token now trades close to $46.12, positioned around the channel bottom and the 50-day Simple Moving Average at $47.38. This alignment has temporarily stabilized the market, but repeated retests weaken the strength of support. The 9-day EMA near $51.48 illustrates how far momentum has shifted downward.
Volume trends reinforce the bearish tilt. The latest selling action has been driven by conviction, indicating that traders are dumping the positions. In case HYPE violates the $47-46 level, analysts expect to see bearish momentum in place, which will clear the path towards a drop towards the 42-40 range.
Market Context and Liquidity
HYPE is as of writing, priced at $48.68 after recording a 1.3% decline in the last 24 hours. The asset has been trading in the range of $45.40-$50.02 during the same time period which indicates massive intraday movements.
Although this is a weakness in the short run, the market is very liquid. The volume of trading over the last 24 hours was $805 million and peaked at 912.00 million mid day trading sessions. Such liquidity provides smoother execution but also reflects intensified speculation.
On the ecosystem front, HYPE maintains $6.53 billion in Total Value Locked, showing sustained engagement from its user base. However, only 270.7 million tokens circulate out of a maximum 1 billion, raising the risk of future dilution as supply gradually expands.
Path Forward for Traders
For traders monitoring key levels, the $47–46 support zone remains central. A breakdown on heavy volume could accelerate selling pressure and validate a deeper corrective phase. The next demand area lies in the $42–$40 region, where buyers may attempt to re-enter.
At the same time, a recovery is still possible. A sharp reclaim above $50 followed by a daily close would neutralize the bearish setup. This move would restore the ascending channel structure and provide bulls with renewed momentum.
Until such a scenario unfolds, caution prevails. The burden now rests on buyers to defend key support and prevent a reset of the broader uptrend. Neutrality in sentiment depends on reclaiming lost ground and establishing price stability above near-term resistance levels.
