Excess fluid [HYPE] It was on a steady downward trend in November and December. The beginning of December saw prices rise 24.1% from $29.15 to $36.17, but this was not enough to end the downtrend.
Modern AMBCrypto report Draw attention to monthly HYPE unlocks.
The release of 10 million HYPE at the end of each month is not yet fully understood. It will likely take a few months of openings to better estimate the extent of the selling pressure, according to Delphi Digital Analyst Jason.
Another report He highlighted whales buying HYPE, but noted that the market remained cautious.
Why HYPE trend remains strongly bearish
Source: HYPE/USDT on TradingView
On the daily chart, the HYPE structure has strengthened to be bearish again.
Since October, the token has formed a series of lower highs and lower lows on the daily chart. The recent low of $29.15 (orange) was broken on Tuesday, December 9.
This breakout means that more losses are likely to follow. This also means that the origin of this downward push, the $30.35-$35.36 area, is a supply zone.
Any attempt to recover will face intense selling pressure in this resistance area.
The DMI showed a strong downward trend in advance, and the CMF was below -0.05 to indicate strong capital outflows.
Source: HYPE/USDT on TradingView
A set of Fibonacci extension levels based on last month’s swing from $50.16 to $29.15 shows the next downside price target at $24.19.
The hourly chart is giving mixed signals. The DMI confirms an active uptrend, but capital flows have turned from bullish to neutral.
To the north, the $29.89 and $30.68 levels served as major short-term resistance.
What HYPE bulls need to accomplish to reverse the downtrend
The recent downward breach on the daily chart has strengthened the downward trend.
To turn the tables, buyers would have to drive a rally beyond $36.17. This is the least likely outcome, given the current structure and capital outflows on the daily chart.
Traders’ Call to Action – Is it time for a downtrend?
The hourly structure was bullish at the time of writing. Once the trend turns bearish, traders can look to enter short positions. Alternatively, a retest of the general resistance up to $30.68 can be used to sell or short sell on HYPE.
Traders can expect a move to $24.19, although that could take a few days to materialize.
Final thoughts
- The Hyperliquid price chart was bearish on the 1-day time frame, but has bullish momentum on the 1-hour chart.
- The higher time frame trend takes precedence, and traders can wait for rejection from the $30 resistance area before selling.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
