Hyperliquid Tests Critical $36.70 Support as Downtrend Continues

HYPE/USDT Price Analysis – August 4

Hyperliquid market continues to be dominated by sellers as the corrective phase that began in mid-July intensifies. The price has breached several support levels and is now testing another critical zone that could determine the next short-term move. While the overarching trend has turned bearish, some short-term indicators suggest selling pressure may be temporarily exhausted, opening the door for a potential consolidation or relief bounce.

Hyperliquid Key Levels

Support Levels: $36.700, $29.890
Resistance Levels: $40.840, $46.310

Hyperliquid Long-Term Trend: Bearish (Daily Chart)

HYPE/USDT shows that the powerful uptrend from earlier in the year has given way to a significant bearish correction. After being rejected from the $50 resistance area, sellers have been in firm control, pushing the price down through the key $40.840 support level, which now acts as new resistance. Already trading at $37.796, the crypto market is testing the next major support level at $36.707. This is a crucial area for the market. A hold and bounce from this level could signal a pause in the downtrend, while a decisive break below it would confirm further bearish intent, with the next target likely being the $29.892 zone.

The Parabolic SAR dots are positioned well above the price candles, confirming the downtrend and acting as dynamic resistance. The Relative Strength Index (RSI), at 38.26, is deep in bearish territory. Its position below the neutral 50 mark validates the strong selling pressure that has been driving the market lower over the past few weeks.

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

The 4-hour chart provides a detailed look at the current price action. After a sharp sell-off that broke the $40.840 support, the price has found at least temporary footing at the $36.707 level. Trading at $37.785 for a gain of +0.52%, the price is currently in a minor consolidation or bounce phase after reaching oversold conditions.

Despite this slight recovery, the short-term trend remains unequivocally bearish. The series of lower highs and lower lows is still intact, and the Parabolic SAR confirms sellers are in control. This bounce is best viewed as a corrective move within the downtrend until it can reclaim significant resistance levels, starting with the major broken support at $40.840.

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