Hyperliquid Drops 41% From All-Time High Seeking $26.53 Support

Hyperliquid, a digital asset, has recently experienced a significant correction after reaching an all-time high near $45. The asset is currently in a downtrend, seeking to establish a higher low, but the price action suggests that a bottom has not yet been formed. The ongoing correction could deepen until high-timeframe support levels, notably around $26.53, are tested. This level is significant as it aligns with the 0.618 Fibonacci retracement and the Point of Control, an area of highest volume traded. Until this support level is tested and oversold conditions are met, the price action is likely to remain weak and subject to further correction.

The current support level is in the Value Area High region, which is not a major support zone. Any bounce here is likely to be short-lived and more corrective than bullish. The Relative Strength Index (RSI) is currently below 50 and not yet oversold, suggesting that further downside is likely before a recovery. The RSI is an important indicator in this structure, as it signals bearish momentum and suggests that further downside is likely until oversold conditions are officially reached.

The recent downtrend began after Hyperliquid set a new all-time high just under the $45 mark. Since that peak, the price has continued trending downward, with no confirmed higher low or trend reversal. The all-time high of $45 is now acting as macro resistance after the sharp reversal. The technical picture implies that the market is still in search of a meaningful support base. The next critical level lies at $26.53, which is supported by strong technical confluence. This makes $26.53 the most significant level to watch for a potential bottom.

Until such a confluence occurs, price action is likely to remain weak and subject to further correction. Traders should remain cautious in assuming a bottom is in without confirmation from volume, structure, and indicator signals. The asset is still in corrective mode and has yet to confirm a higher low. Until the $26.53 support zone is tested and oversold RSI conditions are met, downside risk remains in play. This level could mark the foundation for a new bullish leg, but it hasn’t arrived yet.