HYPE price prediction – Odds of a rebound in the face of selling pressure are…

• Hyperliquid saw intense bearish momentum in March
• Steady selling pressure revealed that a price bounce would likely get retraced quickly

Hyperliquid [HYPE] fell below the $18.5 support level on 03 March. The bulls established this level as support in January and defended it robustly for two months. The sentiment across the market and the selling pressure behind HYPE forced deep losses over the past two weeks.

The decentralized exchange (DEX) token’s fall was not halted by whale purchases. In other news, the whale trader who caused a $4 million loss to Hyperliquid’s HLP vault was back in action recently, fueling some debate among analysts about repeatable, profitable patterns.

One effective way to combat the problem is to reduce leverage limits, which could hurt business and negatively impact HYPE’s price.

Can Hyperliquid prices leap to $20.3 in the coming days?

Source: HYPE/USDT on TradingView

The 12-hour chart highlighted the strong bearishness behind HYPE. The market structure was bearish since mid-February after falling below the $22.2-level. The loss of $18.5 cemented the next leg south.

This was accompanied by an OBV in freefall, indicating heavy selling volume. The RSI also remained below 50. It was below 40 for most of March, reflecting intense bearish momentum on this timeframe.

The $12-support level was previously tested briefly in the second week of December. In recent hours, HYPE saw another reaction from it. It was unlikely that the bullish reversal was underway. Rather, the upcoming bounce would likely just be a liquidity grab.

To break the bearish structure, HYPE would have to climb beyond $21.5 and $24.95. Until then, the bearish bias in the medium term would remain.

Source: Coinglass

The liquidation map revealed a cluster of high-leverage liquidation levels around the $14.84-region. It was relatively close to the price and had a decent amount of cumulative liquidation leverage.

Since liquidity attracts prices, a short-term price bounce to $14.8-$15 is likely to occur over the weekend. Monday could see the gains wiped out and another move to the $12.1 support commence, and potentially fall lower.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion