Hyperliquid (HYPE) is moving inside a long corrective phase, according to the data from TradingView. The asset maintained selling pressure for several months, forming lower highs and lower lows.
After reaching close to the mid-$40s in the previous year, the price started to weaken and move towards the $21-$22 region, which is now a crucial historical support level. The February increase appeared to be a relief rally, as the buyers were unable to remain above the key resistance.
Source:TradingView
The technical pressure appears near the $35-$38 region. This region corresponds with previous selling and lower moving averages. A failure at this level indicates that people are still selling on rallies and not buying for the longer term.
Currently, the price is in the mid to high $26 range. If this level breaks, then attention could shift back to the $21-$22 swing low. To heal, the price must break above $29-$30.
RSI Near Mid-Zone Leaves Room for Further Price Weakness
The exponential moving averages continue to favor the sellers. The 200 EMA is far above the price and continues to move lower, indicating that the long-term market sentiment remains weak.
The 100 EMA also serves as a dynamic resistance level. The shorter moving averages appeared bullish in early February, but the price fell below the 20 and 50 EMAs.
The 14-day RSI is now in the low 40s. During the February rebound, the RSI did touch levels around 60 but failed to remain in an optimistic area. Since the RSI is not yet oversold, there could be some more selling pressure before a strong rebound emerges.
Source:TradingView
The MACD indicator is now negative. After a brief bullish crossover this month, the MACD line again fell below the signal line, and the histogram turned negative. Such signals are common before a minor correction, when there is resistance rejection.
Hyperliquid Critical Price Zones Watching Traders
Market observations by Ardi indicated that the important floor is at $28. If the price drops below this level, the downward pressure will increase, and the next possible level will be indicated at $23. The first place to witness a possible recovery is at $28.50, which traders are observing.
Source: X
Remaining above this level may shift market sentiment to neutral. A true bullish breakout will be realized if the price moves above $30.50, which will challenge the existing downtrend.
Also Read: Hyperliquid (HYPE) at a Turning Point: Will $31 Trigger a Rally?
