Hyperliquid, also known as HYPE, has been experiencing a bearish market structure across different timeframes. Despite a swift bounce on March 7th fueled by volume, there was no promise of a breakout. The price fell to $9.29 but quickly bounced back by 35% within a day, causing indicators on the 4-hour timeframe to turn bullish, although other clues indicated bearishness. The market structure on both the 1-day and 4-hour charts remained bearish, with a key resistance level at $12 that HYPE bulls needed to overcome for a potential recovery.
In March, despite successful defense of the $12 level by Hyperliquid bulls, ongoing market conditions led to a drop below $12 to test $10, reinforcing the bearish bias that had been evident since February. The OBV showed a consistent downtrend, indicating selling pressure, while the Awesome Oscillator highlighted six weeks of downward momentum. A retest of $12 as resistance was anticipated, potentially leading to a move toward the next Fibonacci extension level at $8.2.
On the 4-hour chart, a descending channel formation observed in the past two weeks caused HYPE prices to stagnate near the high of the channel, disappointing bulls expecting a breakout based on the OBV’s movement. Despite a new high set by the OBV and the Awesome Oscillator indicating bullish momentum after the bounce from the channel’s low, the higher timeframe bias remained bearish, with the $12 resistance level posing a challenge. A potential fall to the $11.2 support zone or the mid-level of the channel was expected based on these indicators.
Please note that the information presented is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice. Hyperliquid is facing a challenging market environment with bearish trends evident across various timeframes. Despite a brief bounce, the overall market structure continues to lean towards bearishness, with key resistance levels at $12 that need to be overcome for any potential recovery. Bulls defending the $12 level are facing pressure as market conditions remain uncertain, potentially leading to further downside to test support levels at $10 and $11.2. Traders should exercise caution and conduct their own research before making any investment decisions in the Hyperliquid market.
