Hyperliquid's Price Weakens as Bullish Volume Dwindles, Risking a Drop to $19

The price of Hyperliquid is experiencing downward pressure as the supportive bullish volume diminishes. With the critical support zone at $29 under threat, there is an increasing possibility of a significant price correction down to $19.

Key Takeaways

Downward Pressure: Hyperliquid's price faces growing risks as bullish volume declines.
Support Levels: The important $29 support zone is weakening, increasing the likelihood of a drop to $19.
Market Structure: The asset remains in a bearish structure, with consistent lower highs and lows.
Lack of Demand: Selling pressure persists, and there is insufficient buying interest to support the price.
Impending Risk: If the price closes below $29, a bearish move towards $19 is likely.

The price of Hyperliquid is currently under increasing downward pressure as bullish trading volume declines. The critical support level of $29 is showing signs of weakness, raising concerns about a potential deeper correction toward the $19 mark.

Hyperliquid

Hyperliquid's current market phase suggests it is entering a crucial period, characterized by significant weakness. The asset has been unable to regain momentum following the loss of its pivotal point of control, with a prevailing bearish market structure.

With bullish volume fading and support levels beneath the current price becoming scarce, there is a heightened risk of a more pronounced corrective move that could push the price down to its next major support area near $19. This situation comes amidst Paxos's announcement of selecting Plume, Hyperliquid, and Aptos as primary networks for launching the USDGO stablecoin, which has not yet had any immediate impact on price movements.

Hyperliquid price risks crash if volume does not pick up.

Key Technical Points of Hyperliquid's Price

Hyperliquid price weakens as fading bullish volume puts $19 at risk - 1
HyperLiquid (1D) Chart, Source: TradingView

Currently, Hyperliquid is struggling under a pronounced bearish market structure. It has been consistently producing lower highs and lower lows, indicating ongoing downward pressure across various time frames. This bearish trend became more pronounced after losing the point of control, clearly shifting momentum to favor sellers.

The $29 price area is critical not only as a psychological threshold but also aligns with the lower range of the trading range. This combination makes it a potential accumulation point; however, activity there has not been significant.

Bullish volume has remained weak, failing to reclaim the lost market structure and allowing sellers to maintain their dominance. This lack of demand has left Hyperliquid vulnerable, especially as it hovers near the range's lower boundary.

One notable warning sign is the proximity of the price action to breaking below the $29 low on a closing basis. A confirmed close beneath this level would indicate a structural change likely resulting in an acceleration of bearish momentum. Without substantial buying support, such a breakdown typically leads to an impulsive move downwards, aiming for the next key support level at $19.

The declining bullish volume adds further weight to this bearish outlook. Historically, Hyperliquid has only experienced significant recoveries when volume surged at major support levels. Currently, such inflows are absent.

Recently, Hyperliquid faced criticism for prioritizing revenue over trader needs, but this clarification has not positively influenced short-term price behavior. Carrying consistent selling pressure, attempts to rebound from support have been brief and insufficient.

This mismatch between supply and demand suggests that continued downside is more probable unless market dynamics change significantly.

Future Price Action Expectations

Should the $29 support level continue to weaken and the price closes below this mark, Hyperliquid is likely to accelerate downward toward the $19 zone. A robust response from buyers at $29 will be critical to prevent further bearish movement. Without a clear increase in volume, the short-term outlook remains predominantly bearish.