Hyperliquid falls below key support —Will HYPE crash to $13 next?

• An analyst stressed that HYPE could fall to $13 as it breached a symmetrical price action pattern.
• Intraday traders are over-leveraged at $21.17 on the lower side and $22.79 on the upper side.

With a notable price drop in the past 24 hours, Hyperliquid [HYPE] tops the loser list and has now reached a crucial level.

This decline in HYPE appears to have shifted overall market sentiment to the bearish side due to the formation of bearish price action.

HYPE’s technical analysis and price action 

According to AMBCrypto’s technical analysis, HYPE has recently broken down from a symmetrical price action pattern. The break further breached its crucial support level at $22.70 with its recent price drop.

This breakdown of a key support level has partially confirmed that the asset is poised for a massive decline.

Based on historical patterns, if HYPE closes a daily candle below $22.50, it could drop by 14% to reach $19 in the coming days.

Considering the current market sentiment, it seems that HYPE could easily reach this predicted level.

Additionally, HYPE’s Average Directional Index (ADX) was at 11.20, at press time, indicating weak strength in the asset. This trend might explain the strong downside momentum.

Analyst’s view on HYPE price drop 

Following the recent price drop and breakdown, a prominent crypto analyst made a bold prediction in a post on X (formerly Twitter).

The expert noted that if HYPE breaches the symmetrical triangle pattern, the asset could drop to the $13 level in the coming days, which completely aligns with AMBCrypto’s analysis.

Current price momentum 

Despite these predictions, HYPE was trading near $21.50, at the time of writing, and has experienced a price drop of over 12% in the past 24 hours.

During the same period, its trading volume surged by 95%, indicating heightened participation from traders and investors. The surge is high, compared to previous days.

Also, the surge could be due to the liquidation of long positions and asset offloading. It could also be due to potential accumulation triggered by the price drop.

HYPE traders’ over-leveraged positions

Looking at the bearish price action, according to the on-chain analytics firm Coinglass, it appears that bears are strongly dominating the asset. This may be due to the belief that prices won’t rally soon. 

Data from HYPE Exchange’s Liquidation Map revealed that traders are over-leveraged at $21.17 on the lower side and $22.79 on the upper side. These levels currently act as support and resistance for the asset.

Additionally, traders have built $415k worth of long positions and $2.90 million worth of short positions.

This strongly indicates that short sellers are in control, reinforcing HYPE’s bearish outlook.