Hyperliquid's Value Drops 24% Amid Bearish Momentum

Hyperliquid, a prominent platform in the cryptocurrency space, has experienced a significant decline in its value, dropping over 8% in the last 24 hours and more than 24% in the past week. Despite its strong revenue performance, the platform's price has reached its lowest levels since December 2024. This downturn is attributed to bearish momentum, which has overshadowed the platform's robust fundamentals.

Despite the price decline, Hyperliquid's revenue has surged past $11 million in the last seven days, outperforming major competitors such as Solana, Ethereum, and Raydium. This revenue growth suggests underlying strength that could potentially fuel a rebound if market conditions improve. If Hyperliquid can break through the resistance at $14.65, it could trigger a rally toward $20 or even $25.87. However, failure to reclaim momentum could send the price below $12, marking its lowest point in over three months.

The Relative Strength Index (RSI) for Hyperliquid is currently at 32.59, remaining in neutral territory since March 4. The RSI is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. Values above 70 indicate overbought conditions, while values below 30 signal oversold conditions. An RSI between 30 and 50 suggests weak momentum, often aligning with a downtrend or consolidation phase. Hyperliquid's RSI has stayed below 50 for nine consecutive days, reinforcing the lack of bullish momentum. With the current reading at 32.59, the asset is approaching oversold territory but hasn't yet reached extreme levels. This suggests that selling pressure remains dominant, but if the RSI turns upward and crosses 50, it could signal the start of a stronger recovery.

Hyperliquid's BBTrend, which measures price momentum relative to Bollinger Bands, is currently at -16.69, remaining negative since March 5 and staying below -10 for the past six days. Values above 10 indicate strong upward momentum, while values below -10 suggest strong downward pressure. With the BBTrend at -16.69, the bearish trend remains dominant, reinforcing the recent selling pressure. Staying below -10 for several days suggests that downside momentum has been persistent, limiting any significant recovery attempts. If the BBTrend starts moving toward 0, it could indicate a weakening downtrend, but for now, Hyperliquid remains in a clearly bearish phase.

Hyperliquid's Exponential Moving Averages (EMAs) are signaling a strong bearish sentiment. Short-term EMAs remain well below long-term ones, with large gaps between them indicating strong downside momentum. If the correction continues, Hyperliquid could drop below $12, marking its lowest price in over three months. However, if momentum returns, Hyperliquid could test the $14.65 resistance, with a potential rally toward $17 if broken. A stronger uptrend could push the price above $20, potentially testing $21 and even $25.87 in the coming days.