Hyperliquid (HYPE) Enters Critical Bearish Threshold: Is $19 the Next Destination?

The Bearish Structure Unfolds
Hyperliquid (HYPE) is at a pivotal moment in its price trajectory. Technical indicators and volume dynamics are painting a clear picture of bearish exhaustion, with the $19 level emerging as a critical focal point for traders and investors. The token's recent performance-marked by a sequence of lower highs and lower lows-has reinforced a descending channel pattern, tightening the price within a bearish framework. This structure, combined with deteriorating on-chain metrics, suggests that HYPE's next major move could be a sharp decline toward $19 if key support levels fail.

Technical Indicators Signal Weakness
The bearish bias is corroborated by multiple technical indicators. HYPE's price is currently below all major moving averages, with the 7-day SMA at $36.63, a level it has struggled to reclaim. The RSI has dipped into oversold territory at 28, but this lack of buying momentum has failed to trigger a meaningful rebound. Meanwhile, the MACD remains negative with a bearish divergence of -1.97, further underscoring the lack of bullish conviction.

A critical concern lies in the descending channel pattern, which has confined HYPE's price action for weeks. A breakout above the channel's midline and resistance at $35.50 could theoretically signal a reversal. However, volume has yet to confirm this possibility, with bullish volume fading and bearish pressure dominating. This divergence between price and volume highlights a key risk: the market may be preparing for a breakdown rather than a bounce.

Volume Analysis: Fading Bulls and Sustained Selling Pressure
Volume data paints a particularly grim picture. Bullish volume has "faded, leaving the $29 support vulnerable to breakdown", according to recent analysis. This weakening conviction is compounded by a recent token unlock event, which released 2.66% of the circulating supply and injected $344M of new tokens into the market. While such events often create short-term volatility, the sustained selling pressure observed in HYPE suggests deeper structural weakness.

On-chain data from Glassnode reinforces this narrative, showing a shrinking market cap driven by "sustained selling pressure rather than token dilution". This distinction is critical: it implies that the bearish move is not merely a reaction to new supply but a reflection of broader market sentiment. The shrinking market cap also indicates that HYPE's price is increasingly dependent on liquidity at lower price levels, which may not hold if institutional or retail buyers fail to step in.

Key Support Levels at Risk
The immediate focus for HYPE is the $31–$32 support zone, which has historically acted as a stabilizing floor. However, this level has shown signs of weakening with each retest, raising concerns about its durability. If this cluster fails, the next major target is $29.50, with further downside risk extending toward $19.

A critical juncture lies in the $34–$35 range, where HYPE must stabilize to avoid a deeper correction. Failure to reclaim this area could see the price test $29.50, or even extend toward $20–$22. Conversely, a successful defense above $36–$37 could initiate a recovery toward $42–$45, though this scenario hinges on a breakout from the descending channel-a move yet to be confirmed by volume.

Short-Term Implications for Traders
For traders, the next few trading sessions will be decisive. A breakdown below $31–$32 would likely accelerate the move toward $19, with stop-loss orders and algorithmic selling potentially exacerbating the decline. Investors should also monitor the $28–$31 range, a historical pivot point for accumulation and recovery. However, given the current bearish momentum, this area may serve as a temporary floor rather than a launchpad for a rebound.

Long-term holders may view the $19 level as a potential entry point, but this requires a significant shift in market sentiment. For now, the technical and volume data suggest that HYPE remains in a bearish consolidation phase, with the $19 threshold increasingly within reach.

Conclusion
Hyperliquid (HYPE) is navigating a critical bearish threshold, with technical indicators, volume dynamics, and key support levels all pointing toward a potential decline toward $19. While a rebound is not impossible, the current structure favors a continuation of the downward trend. Traders and investors must remain vigilant, particularly as the market tests the $31–$32 support zone in the coming days.