Hyperliquid slides below $38: THIS points toward $31 retest

Key Takeaways

Hyperliquid has fallen back into the range that stretched back to late May, and the failure to defend $38 meant that further price losses were likely. 

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Hyperliquid [HYPE] failed to break out past the $41 range high in mid-July and has fallen back into the range that it has traded within since late May.

For long-term investors, a move to the range lows would likely offer a good buying opportunity.

HYPE was below the mid-range level at $37.9. It appeared to be retesting the $38 region as resistance at the time of writing. The bearish case was made stronger by the OBV’s descent over the past two weeks.

This indicated steady selling pressure on HYPE, which led to the token’s rejection at $49.

The retracement into the range was an early sign that HYPE would go lower, and this has come true. Now, the fall below the mid-range level was another sign of bearish continuation.

HYPE traders, brace for volatility

The $111k-$112k, where Bitcoin [BTC] was trading in recent hours, was a short-term support zone.

Hence, a Bitcoin price bounce was possible, which in turn could lead Hyperliquid token prices to bounce back above the mid-range resistance.

Traders should brace for volatility, but the trend was bearish. Therefore, their bearish outlook would be justified, and a move to the range low at $31 remained likely.

The path to the range low might not be a straight like downward. The 4-hour chart revealed a bullish divergence on the RSI, marked in orange.

This indicated a potential price bounce to $39-$40. Short sellers need to beware of such a bounce.

The H4 market structure was bearish, and the $38 region has been established as resistance over the past 24 hours. A bearish outlook would be feasible until HYPE bulls flip $38 to support and drive prices above $39.2.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion