Understanding Hyperliquid’s Current Market Performance
Hyperliquid (HYPE) has been experiencing significant turbulence, continuing on a bearish trend throughout November and December. The token saw a brief 24.1% bounce in early December, rising from $29.15 to $36.17, but this upward movement wasn’t sufficient to overturn the prevailing downtrend. Now, traders are focusing on critical resistance zones to determine future market behavior.
Monthly Token Unlocks and Their Impact
One of the primary pressure points surrounding HYPE is the monthly token unlocks, with approximately 10 million HYPE being released at the end of each month. According to Delphi Digital analyst Jason, it will take some time to fully assess the extent of selling pressure resulting from these unlocks. Meanwhile, reports of whale buyers stepping in signal interest from major investors, though the overall caution in the market persists.
Price Action and Key Resistance Zones
On the daily chart, HYPE has continually formed lower highs and lower lows, reinforcing the bearish structure. Most recently, the price broke below $29.15, further solidifying the downward trend. Resistance zones in the $30.35–$35.36 range are expected to trigger significant selling pressure, making any recovery attempt difficult for traders.
Technical indicators like the Directional Movement Index (DMI) confirm an active bearish trend, while the Chaikin Money Flow (CMF) indicator reflects strong capital outflows. Fibonacci extension analysis points to $24.19 as the next key bearish target for HYPE.
Short-Term Strategies for Traders
While the hourly chart has shown mixed signals, traders should keep an eye on short-term resistances at $29.89 and $30.68. To reverse the broader bearish trend, buyers will need to push the price above $36.17, which is unlikely under the current market conditions. Until then, traders can consider selling or entering short positions on retests of overhead resistance zones or after bearish structure breaks confirm.
A Tool for Monitoring Crypto Trends
For traders looking to track HYPE and other cryptocurrencies, a reliable platform like TradingView provides advanced charting tools. Analyze market trends, track price action, and respond to market developments in real-time with this essential resource.
Final Thoughts
The Hyperliquid (HYPE) market remains under pressure due to high selling activity and macro-level bearish trends. While there may be opportunities for short-term trades, the long-term outlook continues to point to further downside. Stay informed and use advanced tools for analysis to make calculated trading decisions in this volatile environment.
Disclaimer: This content is informational and does not constitute financial advice. Always conduct your research before making investment decisions.
