Hyperliquid Enters Corrective Phase After Hitting $50.000 Market Zone

HYPE/USDT Price Analysis – July 21

Hyperliquid market has entered a corrective phase after its strong, multi-month uptrend met significant resistance at the psychological $50.000 level. While the long-term outlook remains bullish, the immediate price action has shifted in favor of sellers. Market indicators now confirm a loss of upward momentum as the market digests its substantial recent gains, establishing a clear short-term downtrend.

Hyperliquid Key Levels

Support Levels: $40.840, $36.700
Resistance Levels: $46.310, $50.000

Hyperliquid Long -Term Trend: Bullish (Daily Chart)

The daily chart for HYPE/USDT shows an asset with a powerful underlying uptrend that began in April from lows near the $10.00 mark. This sustained rally saw the price make consistent higher highs and higher lows, culminating in a peak at the critical $50.000 resistance area in mid-July. After failing to break through this level, the market rolled over, initiating the current pullback.

Currently trading at $44.310, the price is in a clear corrective pattern. While this does not negate the broader bullish structure, it does indicate that bears have taken temporary control to push the price lower.

The key support level to watch is $40.840; a hold above this area would be seen as a constructive and healthy correction, while a break below it could signal a more significant downturn. The Parabolic SAR dots have now appeared above the price candles, a clear signal that the previous uptrend has paused and a corrective move is in effect. The Momentum indicator, while still positive, has peaked and is trending downwards, which confirms that the upward buying pressure has significantly weakened.

Hyperliquid Short-Term Trend: Bearish (4-Hour Chart)

The 4-hour chart provides a detailed look at the current bearish price action. Trading at $44.344 for a loss of -0.12%, HYPE is in a clear and structured downtrend, forming a sequence of lower highs and lower lows since its rejection from the $50.000 peak. A recent attempt to rally was firmly rejected at the $46.310 resistance, reinforcing the sellers’ control.

Bears are dictating the short-term price flow. They are successfully defending resistance levels on bounces and pushing the price towards lower support zones. The path of least resistance on this timeframe is currently to the downside, with the next major target for sellers being the $40.840 support area.

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