The Hyperliquid (HYPE) token is undergoing a severe correction phase on the daily (1D) timeframe after confirming the breakout of its 59-bar uptrend line. Increasing selling volume and constant failed reversal attempts by buyers keep price action under clear bearish control. In this scenario, price action seeks to determine whether structural support at $52.67 will act as an effective containment zone or open the path toward the $38.17 lows.
Market Structure: Supply Dominance and Points of Control
HYPE‘s technical architecture confirms a change of character in order flow. After breaking the bullish trendline that sustained the previous momentum, price action began recording an uninterrupted sequence of lower highs and lower lows starting from Bar 12.
Sellers successfully breached the initial structural containment levels. Currently, the market is testing demand responsiveness around the $52.67 range, a zone that represents the second-to-last bastion of bullish control within the macro structure.
Breakout and Failed Reversal (Bars 18 to 21)
Bar 18: Sellers broke below a micro-congestion range and breached the 59-bar uptrend line. This move invalidated the last leg up originating from support at $38.17.
Bar 20: Bulls attempted a two-bar reversal to reclaim the 20-period Exponential Moving Average (20 EMA). Although price closed marginally above this indicator, the candle printed a long upper wick. By setting a lower high below Bar 12, the market established clear structural resistance at $68.99 and projected a descending channel.
Bar 21: Institutional supply took full control. Bears drove a high-conviction expansion bar with virtually no wicks, pushing price back below the 20 EMA and breaking below Bar 18’s low. This price action executed a failed reversal that trapped Bar 20 buyers.
Testing Supports and Loss of Momentum (Bars 22 to 28)
Bar 22: Although pressure continued, the candle printed a small body with wicks on both ends, signaling deceleration. The low tested structural support at $58.55 (the first point of control from the 59-bar trendline), temporarily halting the selloff.
Bar 26: Following three weak bounce candles that failed to reach the 20 EMA, Bar 26 acted as a pullback that warned of resuming bearish momentum.
Bar 27: Sellers breached key support at $58.55 (Bar 2 low), though the session failed to consolidate a close below the zone.
Bar 28: Finally, Bar 28 confirmed the breakout below $58.55 support. However, the penetration lacked clarity: the close failed to extend past Bar 27’s low, and the body showed total overlap with the previous candle, signaling a loss of supply momentum.
Absorption and Resumption of Selling (Bars 31 to 34)
Bar 31: A two-bar reversal attempt (Bars 30 and 31) failed once again as it could not reach the 20 EMA. The candles displayed tight ranges and zero bullish conviction.
Bar 32: Bears re-entered the market by printing a wide-range outside bar with strong conviction. This move triggered stop losses for buyers from Bars 30 and 31, providing liquidity to accelerate the drop.
Bar 33: The session maintained bearish inertia, but a lower wick and a small body hinted that buyers were starting to absorb supply at lower levels.
Bar 34: The candle overlapped almost completely with Bar 33 and closed slightly below its low. While selling pressure persists, price has not yet directly tested the next support level located at $52.67.
Market Outlook and Summary
The HYPE chart exposes the fragility of current demand against strong selling flow. Losing $58.55 support left the asset hunting for liquidity around $52.67.
If sellers break below this containment level, the asset will face accelerated downside toward $38.17, the origin of the previous macro move. Conversely, if demand decides to defend the current zone, bulls will need to drive price above resistance at $60.48 (Bar 32 high) to invalidate the immediate bearish structure.
Disclaimer: This content is strictly for informational and educational purposes. It does not constitute financial, investment, or trading advice. Trading cryptocurrencies carries a high risk of capital loss.
Communications Professional. Crypto Enthusiast. Economic Journalist. Bitcoiner & Altcoiner.
